Kirin buys out Brazilian beverage maker

Japan's Kirin Holdings Company has assumed full control of a leading Brazilian beverage maker, after striking a deal with minority shareholders who opposed the buyout.

Kirin said on Friday that it has turned Schincariol into a wholly-owned subsidiary. The Brazilian firm has the second largest share of the country's beer market.

The move came after Kirin agreed with members of Schincariol's founding family to buy out the company's remaining stake of over 49 percent for more than 100-billion yen, or about 1.3 billion dollars.

The family had filed a lawsuit after Kirin purchased a stake of more than 50 percent in the firm for about 2.6 billion dollars in August.
Talks between the 2 sides led to Friday's buyout deal.

But the agreement has forced Kirin to spend more on the acquisition than it initially planned.

Observers say it remains to be seen whether the Japanese company can earn enough profits in Brazil to justify the investment.

Friday, November 04, 2011 15:27 +0900 (JST)