Japan's Suntory in talks to buy GSK drink brands

Japan's leading Nikkei business daily said its Suntory beverage and food unit has emerged as a major candidate to buy the two brands.

A source in London told AFP the two sides were discussing the move, after GSK in April confirmed plans to sell the Lucozade energy drink and Ribena fruit juice as part of plans to restructure its European operations. Analysts said a sale would net the British firm a total of £1.0bn.

Suntory, one of Japan's biggest brewers and non-alcoholic drinks manufacturers, has embarked on a string of overseas acquisitions in recent years to offset a shrinking domestic market.

Suntory, which raised about US$3.9bn in an initial public offering in July, is hoping to strengthen its soft drink business in Europe and North America with the purchase of the GSK brands, the Nikkei said.

A Suntory spokesman declined to confirm the report, saying: "We have no comment as no decision has been made."

Suntory said last year it would form a joint venture with Chinese brewer Tsingtao to expand its reach in China, the world's biggest beer market. It has also said it will buy a 51% stake in Indian food and drink maker Narang Group and set up a joint venture with that company

In 2009 Suntory bought Europe's Orangina Schweppes Group for about US$3.3bn.

Source: AFP via I-Net Bridge