Asahi Breweries proposes merger with Sapporo: report

0 Comments | AFP, February, 2007

TOKYO (AFP) — Japan's largest brewer, Asahi Breweries, could become a "white knight" merger partner for Sapporo Holdings, now the target of a takeover offer from a US hedge fund, according to a newspaper.

Asahi Breweries Ltd. denied the report in the Yomiuri Shimbun, which said Japan's top brewer informally proposed a merger to Sapporo last year, hoping to expand its product line-up and benefit from economies of scale.

The report, which quoted unnamed sources, said Sapporo had not made a clear reply, but that the two Japanese companies could speed up the merger process after this week's offer from US hedge fund Steel Partners.

Asahi issued a flat denial, saying, "There is no such fact."

Steel Partners Japan Strategic Fund, the Japanese arm of the US...