9 Feb 2010

Kirin - Suntory merger called-off

6:37 am on 9 February 2010

Japanese brewing and food groups Kirin and Suntory have called off merger negotiations.

In a statement, Kirin said it was unable to agree with Suntory on ways to ensure management independence and transparency within the merged company.

Suntory blamed the breakdown on a disagreement over the merger ratio which would have determined control of the new business.

A deal would have created one of the world's biggest food groups. Last year, Kirin and Suntory posted combined sales of beer, soft drinks and food of about $US42.5 billion.

The announcement that the deal was off caused Kirin's shares to fall 5%.