Deal for 1.2 billion dollars

Suntory Beverage & Food Ltd will acquire the unit for manufacture of soft drinks Japan Tobacco Inc (JT)  for the amount of 150 billion  Yen (1.2 billion Dollars) after the tobacco producer decided to cut its losses in the drinks business.

The production of food and drinks belongs to Suntory Holdings trade mark and they will acquire all shares in two of the divisions of JT.

The strong presence of Suntory Beverage & Food in the Japanese soft drinks market and its market power enabled him to develop brands and services of JT.

The tobacco company has already stated in February that it would withdraw from the business of soft drinks by the end of September. JT entered drinks business in 1988 and is the 10th largest producer of soft drinks in Japan.

Japanese beverage producers to a great extent owe their growth in demand abroad because of problems with domestic demand coming from a shrinking and ageing population.

Last year Suntory Holdings accomplished more extensive purchases, one of which is acquiring of Beam Inc  for about 16 bn  Dollars. Recent transactions were for  the manufacturer of coffee Roots and for the flavoured drinks Momono Tennensui.