JapanÔÇÖs third-largest brewer, Suntory, is in talks to buy European beverage firm Orangina from Blackstone Group and Lion Capital Holdings.
Privaty equity firms Blackstone, which is headquartered in New York, and London-based Lion bought the European soft drinks operation of Cadbury Schweppes for Ôé¼1.85 billion in 2006. It is widely expected that Suntory will pay above this price if an agreement is reached.
The business, which was renamed Orangina Schweppes in February this year, has around 2,500 employees and 23 brands. In 2008 it had sales of Ôé¼1 billion, with most of its products being sold in Europe, Africa and the Middle East.
Osaka-based Suntory is currently seeking to expand outside its contracting domestic market, where beer sales are falling. Over the past 10 years, sales of beer in Japan have fallen 15 per cent in volume.
In 2008, SuntoryÔÇÖs European revenues fell 29 per cent to JPY9.2 billion (Ôé¼68 million). It is currently in talks to merge with its rival, JapanÔÇÖs largest brewer, Kirin, which would result in a food and beverage giant with annual sales of $41 billionÔÇöcomparable to US companies such as Kraft and PepsiCo.
Last year, Suntory took over DanoneÔÇÖs Australasian fruit juice unit, Frucor, which cost Ôé¼600 million.
The company is best known in Japan for its Premium MaltÔÇÖs beer and Boss canned coffee.
Talks are said to be in the early stages, and no agreement has yet been reached.
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