Wednesday, October 2, 2013
Asahi Soft Drinks To Buy Kewpie's Mineral Water Ops
TOKYO (Nikkei)--Asahi Soft Drinks Co. will buy Kewpie Corp.'s (2809) mineral water business for about 1 billion yen at the end of November, The Nikkei learned Wednesday.
The Asahi Group Holdings Ltd. (2502) unit will turn Fujisansensui Co. into its subsidiary and acquire the mineral water producer's production facilities. Asahi Soft Drinks also plans to keep Fujisansensui's employees.
Asahi Soft Drinks aims to expand its share in the steadily growing mineral water market by enhancing its output capability. Kewpie decided to sell its mineral water operations because they did not fit well with its processed food operations, which make mayonnaise and other condiments and seasonings.
Fujisansensui booked sales of about 1.7 billion yen for the year ended November 2012, with its net loss totaling about 100 million yen. The company has continued to book losses since fiscal 2010.
(The Nikkei, Oct. 2 evening edition)