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Monday, January 13, 2014

Japan's Suntory to purchase U.S. drinks group Beam in $16 billion deal, (NYSE: BEAM)

Suntory Holdings Ltd has agreed a $16 billion deal to purchase Beam Inc, making the Japanese company the world's third-largest maker of distilled drinks with a global footprint.The company is paying $13.6 billion in cash for Beam shares as well as assuming its net debt, bringing together Beam's Jim Beam and Maker's Mark bourbons, Courvoisier cognac and Sauza tequila with Suntory's Yamazaki, Hakushu, Hibiki and Kakubin Japanese whiskies, Bowmore Scotch whisky and Midori liqueur.It is the latest example of how Japanese drinks firms are seeking to quench their thirst for overseas growth as the population in their home market shrinks."All Japanese beverage companies have been focused on getting growth outside Japan," said Bernstein Research analyst Trevor Stirling.

Beam Inc. (Beam) is a premium spirits company that makes and sells branded distilled spirits products in markets worldwide. Shares of BEAM traded higher by 24.04% or $16.1/share to $83.07. In the past year, the shares have traded as low as $59.66 and as high as $70.63. On average, 675546 shares of BEAM exchange hands on a given day and today's volume is recorded at 27090438.