August 13, 2009

Sapporo Brewer to Form Capital Alliance with Soft Drink Maker

Sapporo Holding Ltd., Japan's 4th-largest brewer and Pokka Corp., an unlisted soft drink maker reached a basic agreement on a capital and business alliance. Sapporo announced that it would acquire a 21% stake of Pokka Corp. Pokka became unlisted through a management buyout with investment fund Advantage Partners and Citic Japan Partners in 2005. Meiji Holding Co., a confectionery and dairy products maker acquired about a 21% stake of Pokka from funds in 2008 as a strategic buyer. At this time Sapporo will invest the same amount as Meiji.

This tie-up as well as the mega-merger between Kirin and Suntory could lead to more consolidations in the food industry.

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