Brazil: Heineken makes $706 million purchase of Kirin Brasil

International brewer Heineken announced their move to purchase rival brewer Kirin Brazil, part of Japan’s Kirin Japanese Group. The deal, estimated at $706 million USD, would turn Heineken into Brazil’s second-largest beer maker. The operation is still awaiting approval from the country’s competition authority, CADE.

Kirin Brasil consists of 12 production plants in Brazil, as well as its own distribution network concentrated in the North and Notheast regions of Brazil. Kirin’s portfolio accounts for around 9.9% of Brazil’s market, with brans such as Baden Baden, Eisenbahn and Schin. Kirin also runs a line of soft drinks.

Heineken currently runs 5 production plants in Brazil, with a distribution network shared with local Coca-Cola bottlers. The company has said it expects to see important gains from the purchase, including improvements in production, logistics and general costs.

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