Japan's Kirin buys controlling stake in Brazilian brewer for $2.56 billion
02 Aug 2011
Kirin Holdings yesterday announced plans to acquire a controlling stake in Aleadri-Schinni Participacoes e Representacoes SA, which holds a majority stake in Brazilian brewer Schincariol, for $2.56 billion (198.8 billion yen).
The Tokyo-based company, which is looking for overseas growth amid declining domestic demand, said the strategic acquisition would enable it to build a solid foothold in the rapidly expanding Brazilian market in addition to its existing base in Asia and Oceania regions.
Kirin, Japan's second largest brewer after Asahi Breweries, said it had bought all outstanding shares of Aleadri-Schinni, which holds a 50.45 per cent stake in Schincariol.
Schincariol, known for its Nova Schin, Devassa Bem Loura, Glacial, Baden Baden and Eisenbahn brands, is Brazil's second-largest beer producer and the third-largest carbonated soft drinks company.
Sao Paulo-based Schincariol reported 2010 sales of 2.85 billion real ($1.82 billion).
Brazilian beer market is rising in recent years due to its booming economy and rising wages. Beer volumes in Latin America's largest economy grew 3.4 per cent in the fourth quarter, compared to 14 per cent slowdown for the first nine months of 2010.