) -- Japanese beer makers
terminated their merger negotiations which would have created one of the world's largest food and beverage makers.
In a statement issued Monday, Kirin cited differences in views over ensuring management independence and transparency in the merged company. Kirin said it had been negotiating for the merged company to be a listed entity while Suntory didn't subscribe to the same view.
The companies failed to agree on how much say Suntory would have in the merged entity,
reports, adding that Suntory's founding family, including President Nobutada Saji, holds a 90% stake in the firm.
Kirin said that even if negotiations were to continue, "they were unlikely to result in the establishment of a company that would fulfill Kirin's aim of developing as a leading global company and earn the understanding and approval of Kirin's domestic and overseas customers, employees, shareholders and other stakeholders."
Suntory said in a separate statement the firms couldn't agree on a merger ratio, among other issues.
Tomonobu Tsunoyama, an analyst at Tokai Tokyo Research Center, told
that the breakdown in talks was good for Kirin but was a blow to Japan's beverage industry. "This is likely to slow consolidation in a hypercompetitive sector that is still grappling with price falls," he said.
A merger of Kirin and Suntory would have created a company on a par with
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