Kirin negotiates to acquire National Foods

Kirin Holdings (Japan) has stated that it is still in negotiations regarding the planned acquisition of Australia-based National Foods, a dairy product and soft drink subsidiary of Philippines-based San Miguel. The Tokyo-based beer and beverage maker has been in talks with San Miguel, in which it has a 20% stake, over the possibility of taking over National Foods.

San Miguel wants to sell 49% of its stake in National Foods. The proceeds may be used to fund the firm’s ambitious foray into high-growth businesses and pay off debt, but say that talks with Kirin were still “preliminary.”

Kirin has grown to become one of Japan’s leading brewers but also owns breweries in China and Taiwan. Kirin also owns a 45% stake in Australasian brewer Lion Nathan, and is keen on expanding its interests in Australia beyond alcoholic beverages. The company is now looking to take over San Miguel's dairy product and soft drink unit in Australia. San Miguel has also been approached by private equity firm Carlyle regarding the stake in National Foods.

Kirin growth strategy is based on generating 30% of sales and profits from markets outside Japan by 2015. Domestically, the brewer is vying for number one spot with arch-rival Asahi Breweries. Kirin also has soft drinks interests domestically and earlier this year embarked on an organisational overhaul that saw it take full control of soft drinks associate Kirin Beverage Corp. The move was part of the company’s plan to consolidate all its businesses into one holding company.