Japanese beverages giant Kirin has bought Fraser and Neave’s 55 percent stake in Myanmar Brewery for US$560 million, the Tokyo-based company said in a statement on August 19.
Kirin’s Southeast Asian subsidiary, Kirin Holdings Singapore Pty., Ltd, was appointed by Union of Myanmar Economic Holdings Ltd., as its nominee for the share transfer from F&N, the statement said.
The acquisition of the 55 percent stake, representing 78,507 shares, came less than two weeks after military-owned conglomerate UMEHL, Myanmar Brewery’s operator, backed down in a long-running legal dispute with Singapore-based F&N over the value of its share in the company.
Myanmar Brewery, which was established in 1995 and produces top-selling Myanmar Beer, as well as the Andaman Gold and Myanmar Double Strong brands, dominates the domestic beer market.
Kirin said Myanmar Brewery had significantly expanded its business since being established in 1995.
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“Myanmar is an exciting market with considerable prospects; high growth and increasing consumer consumption have been forecasted following the country’s recent democratisation, ongoing reforms and progressive lifting of economic sanctions,” Kirin said.
“Kirin aims for further growth by leveraging its own expertise in technology, product development and research and marketing, and MBL’s business foundation,” it said.
Kirin said its integrated beverages business strategy focuses on Oceania, Brazil and Southeast Asia.
“With this latest acquisition, Kirin will further strengthen its business in the Southeast Asian region.”
Kirin said Myanmar Brewery has about 1,000 employees and achieved sales in 2014 of about K254 billion, or nearly $200 million at current exchange rates.
