INDONESIA: Asahi Group expands bottled water business in US$193m deal
Asahi wants to gain more access to Indonesia's bottled water market
An Asahi Group joint-venture in Indonesia is to take control of bottled water producer Tirta Bahagia Group in a deal worth IDR2.2tn (US$193m).
Tirta Bahagia Group, which owns the Club bottled water brand, will transfer control of the 22 companies it owns to two companies, PT Tirta Sukses Perkasa and PT Tirta Makmur Perkasa. Both companies are JVs set up last month by Asahi, Tirta Bahagia and PT Indofood CBP Sukses Makmur, which operates other JVs in Indonesia with Asahi.
In a statement released on Friday (15 November), Asahi said the latest deal will give it “full access to (Indonesia's) bottled water market, the largest segment of the non-alcohol beverage market”. The company said it will also continue its expansion into Indonesia's non-alcoholic beverage market, “for which strong growth is expected”.
The deal is expected to close in the first quarter of 2014.
The statement said the two new JVs will acquire “most of the assets of TB Group”, including land, buildings, machinery, vehicles, furniture and fixtures and inventory, as well as trademarks. PT Tirta Sukses Perkasa, a manufacturing joint venture, will take manufacturing assets, while PT Tirta Makmur Perkasa, a distribution joint venture, will control distribution assets.
Asahi and Indofood JVs will own 80% of the two new ventures, while Tirta Bahagia Group will own 20% through its Multi Bahagia unit.
Tirta Bahagia Group is second in the Indonesian bottled water market behind Danone, Asahi said.
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