Heineken N.V. announced today the completion of the transaction to acquire Brasil Kirin Holding S.A. from Kirin Holdings Company, Limited.
The closing of the transaction follows fulfilment of all conditions precedent as agreed on 13 February 2017, when Heineken announced it had entered into an agreement to acquire Brasil Kirin (inside.beer, 13.2.2017). On 24 May 2017 Heineken has received the required regulatory approval without any conditions from the Brazilian Competition Authority (CADE) for the acquisition of Brasil Kirin.
The takeover makes Heineken the number two beer producer in Brazil with a combined market share of 17.8%. Still, two thirds (67%) of the Brazilian beer market are dominated by Ambev, a subsidiary of AB InBev. Third largest brewer is Grupo Petrópolis (13.1%).
In 2011, in a move to internationalize its own beer business, Japan's Kirin Holdings bought Brazilian’s No. 2 brewer Schincariol at a price of 4 billion reais ($1.25 billion) and renamed it Brasil Kirin. The move was intended to gain a foothold on the fast-growing South American market and to make Kirin less dependent on an aging and shrinking beer market in Japan.
But Brazil's economic slump and unfortunate management hardly affected the business and Kirin decided to focus its attention more on South East Asian markets. As a consequence, the business in Brazil was up for sale and Kirin Holdings finally agreed to sell it to Heineken at a price of ¥77 billion ($700 million).
Heineken is the world's most international brewer with a well-balanced geographic footprint and leadership positions in both developed and developing markets.. The company employs over 73,500 employees and operates more than 165 breweries, malteries, cider plants and other production facilities in more than 70 countries. Besides the signature Heineken brand, the group has a portfolio of more than 250 international, regional, local and specialty beers and ciders.
