Suntory Beverage & Food Ltd has said it will buy Japan Tobacco Inc’s beverage vending machine business for around 150 billion yen ($1.2 billion), according to a report in Reuters.
Japan Tobacco announced in February that it would be exiting from the drinks sector, saying that the “operating environment of the beverage business in Japan has become increasingly challenging”.
Commenting on the proposed deal at a media briefing, Suntory Beverage President Nobuhiro Torii said: “We want to be the No.1 beverage maker in 2020 and we know it won’t be easy. We have got a strong partner to achieve this goal”.
The purchase, which is expected to be close by July, is subject to pending regulatory approval.