Suntorys Japan Tobacco purchase is expected to be completed on 31 July

Suntory's Japan Tobacco purchase is expected to be completed on 31 July

Suntory Holdings has reached a definitive agreement to purchase Japan Tobacco's beverage unit, including its vending machine business.

Suntory announced its intentions in May and it is to pay JPY150bn (US$1.2bn) for Japan Tobacco's beverage business, including coffee brand Roots and flavoured water Momono Tennen-sui.

When it first mooted the move, Suntory hailed the acquisition for giving it access to JT's vending machine distribution.

The company expects the transaction to be completed by the end of this month. A statement read: "We are in the process of evaluating the effects of the acquisition on Suntory Beverage and Food’s consolidated performance for the fiscal year ending December 31, 2015. We plan to release this information on November 4 with the release of third quarter earnings for FY2015."

Japan Tobacco revealed that it was putting its beverage unit up for sale in February, because of increased competition.