Kirin continues on expansion trail with San Miguel stake

Posted by Isobel Drake on 23rd February 2009

Kirin Holdings, Japan’s second largest brewer, and San Miguel Corporation (SMC) have entered into an agreement for Kirin to purchase the 43.3% of San Miguel Brewery, Inc. (SMB), the largest brewer in the Philippines with a reported 95% market share. The investment will significantly contribute to Kirin’s further growth in its alcohol business in Asia and Oceania, the company advised.

The move continues Kirin’s push for acquisitions that can increase their sales outside of Japan as their home market struggles for growth. In Australia, they have already purchased National Foods and Dairy Farmers and have a major shareholding in Lion Nathan – which recently made an unsuccessful bid for Coca-Cola Amatil.

Kirin is also launching a tender offer to purchase additional shares from SMB shareholders other than SMC, which could result in the Japanese brewer holding a 49% stake in SMB.

SMB’s beer market share in the Philippines is approximately 95%, and its parent SMC has long been in the business in Asia, including China, Vietnam, Indonesia and Thailand. Through this investment, Kirin said they were “aiming to establish a strong operational base for both manufacturing and sales in the Asia and Oceania markets, accelerating creation of group synergies in alcohol business.”