Sapporo to merge with Pokka

JAPANESE beer and beverage maker Sapporo Holdings Ltd. and soft drink company Pokka Corp will soon start talks to merge operations and the new corporate structure will commence operations from April 2012. As a step toward the merger, Japan's fourth biggest brewer will raise its stake in Pokka from 21.4% to 85.5% by buying shares from Japanese investment fund Advantage Partners Inc. and dairy food and confectionery maker Meiji Holdings Co on March 29.

The deal, valued at Y21.27 billion, comes as major Japanese drinks companies are on the prowl for mergers and acquisitions both at home and overseas as they contend with saturated demand due to a shrinking domestic customer base and a weak economy.

Sapporo predicts a net profit of Y6 billion in 2011, down 44% and sales of Y482 billion, after including Pokka's annual sales of about Y97 billion, up 24%.