Japan’s Kirin Holdings Co. has bought a controlling stake in Myanmar Brewery Ltd., the largest beer maker in the Southeast Asian nation, for $560 million, the company announced. The deal was routed through its Singapore subsidiary – Kirin Holdings Singapore Pte. Ltd. – a wholly owned unit handling the group’s South East Asia operations, which will hold a 55% stake in in Myanmar Brewery, while the remaining shares will be held by military-run Myanmar Economic Holdings Ltd.
The deal will also see Kirin buy controlling stake that had been held by Singapore-listed Fraser and Neave’s (F&N) stake in the beer giant, which controls over 80 percent of the Myanmar’s beer market and known for its beer brands such as Myanmar Beer and Andaman Gold.
Earlier this month, Singapore’s F&N said it would sell its majority 55 per cent stake in Myanmar Brewery Limited for $560 million, bringing to an end a long-drawn spat between the two joint venture partners. The deal value was based on the exchange rate between Myanmar kyat and the US dollar on April 30, 2013.
Kirin said that Myanmar is an “exciting market with considerable prospects”, and added that the country was set for high growth and was also forecast to see increasing consumer consumption following its recent democratisation, ongoing reforms and the lifting of economic sanctions.
“Kirin aims for further growth by leveraging its own expertise in technology, product development, and research and marketing, and MBL’s business foundation. … Kirin is developing integrated beverages business under its global management system focused on Oceania, Brazil and Southeast Asia. With this latest investment in Myanmar, Kirin will further strengthen its business in the Southeast Asian region,” the Japanese firm’s statement added.