Kirin Holdings to acquire rest of Schincariol

Kirin Holdings to acquire rest of Schincariol

Kirin Holdings has settled a dispute with Schincariol's remaining shareholders, after agreeing to buy them out for a collective BRL2.35bn (US$1.34bn).

Kirin said at the end of last week that it will acquire the outstanding 49.54% in family-owned Schincariol, Brazil's second largest brewer behind Anheuser-Busch InBev's AmBev. The deal follows Kirin's announcement in August that it would acquire a 50.45% stake in the brewer for BRL3.95bn.

Since then, however, Schincariol's remaining shareholders have sought legal action to block the stake sale. By buying these shareholders out, Kirin has settled the dispute, and all legal action has been dropped, it said.

Several analysts have criticised Kirin for paying too much for Schincariol. The group operates mainly at the low-end of the Brazilian beer market and accounts for around 11% of beer sales by volume. AmBev's market share is around 70% in volume terms.

"This additional acquisition will not only enhance Kirin's governance over Schincariol as a wholly-owned subsidiary but will also help Kirin further increase the competitiveness of Schincariol in the fast-growing Brazilian market and generate synergies with Kirin, through which Kirin seeks to accelerate growth," the Japanese firm said.

For the company's announcement, click here.