Asahi Pres. Says No Plans for Tie-Ups With Sapporo

By Kyodo News International, Tokyo

Feb. 17–TOKYO — Asahi Breweries Ltd. President Hitoshi Ogita said Saturday the company has no plans to propose business and capital tie-ups to Sapporo Holdings Ltd., now the buyout target of a U.S. investment fund.

Ogita told reporters he has no plans to meet with Sapporo officials at this time.

As a reason for not opting for an alliance with Sapporo, Ogita said it is difficult to expect synergy in the field of personnel and production facilities.

“We will place priority on our product development,” he said.

On Thursday, U.S. investment fund Steel Partners announced a buyout bid for Sapporo, Japan’s third-largest beer maker, raising speculation that Asahi, the country’s industry leader, may surface as a “white knight” to save Sapporo from the unsolicited takeover attempt.

Ogita said even if rival beer makers such as Kirin Brewery Co. and Suntory Ltd. make business tie-up or integration proposals, Asahi will not get on the bandwagon.

“We will not join competition for a larger market share,” he said.

Ogita said Steel Partners has not offered to sell its stake in Sapporo to Asahi nor has Asahi asked the U.S. investment fund to sell the Sapporo shares to it. Steel Partners is Sapporo’s biggest shareholder with an 18.6 percent stake.

Sapporo has said it may consider integrating operations with one of its domestic rivals, depending on Steel Partners’ move.

Sapporo’s main lender, Mizuho Corporate Bank, is exploring the possibility of forming a tie-up between Sapporo and other major Japanese brewers, according to sources familiar with the matter.

Steel Partners plans to launch a public tender offer to acquire a 66.6 percent stake in Sapporo if it obtains approval from the brewer’s board. But if the Sapporo board rejects the proposal, Steel Partners may initiate a hostile takeover bid.

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