Kirin, Japan Coca-Cola bottlers talk distribution deal, capital tie-up (updated)

Coca-Cola Bottlers Japan Holdings

26/10/2016 04:59

* Kirin says in talks for cooperation in distribution, 
procurement 
    * Deal could involve cross-shareholding - Nikkei 
 
 (Adds comments from Kirin and bottlers; share price) 
    TOKYO, Oct 26 (Reuters) - Japanese beverage company Kirin 
Holdings  2503.T  said it is in talks with Japan's two Coca-Cola 
bottling companies, Coca-Cola East Japan  2580.T  and Coca-Cola 
West  2579.T , on cooperating in distribution and procurement 
through a capital tie-up. 
    "We are discussing the matter with Coca-Cola group and 
nothing has been determined at this point," Kirin said in a 
statement after the Nikkei business daily reported that they are 
in negotiations. 
    "We are looking at cooperating in distribution and 
procurement, a Kirin spokesman said. The agreement may be 
concluded before the end of the year, the Nikkei reported. 
    Kirin is looking at cross-holding shares in a new entity 
formed by the merger of Coca-Cola West and Coca-Cola East Japan, 
while Coca-Cola Co  KO.N  through its Japan unit will hold a 
stake in Kirin's beverage unit, the paper said. 
    The two Japanese Coca-Cola companies, bottle and distribute 
Coca-Cola drinks in Japan and manage networks of vending 
machines selling the beverages. The companies are business 
affiliates of Coca-Cola Co but are not subsidiaries. 
    The two Coca-Cola bottlers, in separate statements, 
confirmed that talks were underway, but said no decision had 
been made. 
    Kirin's shares gained 1.6 percent in morning trading in 
Tokyo, with Coca-Cola East Japan rising 5.5 percent and 
Coca-Cola West up by 4.8 percent. That compares with a 0.2 
percent decline in the benchmark Nikkei 225 index  .N225 . 
 
 (Reporting by Tim Kelly and Ran Kim; Editing by Stephen Coates 
and Muralikumar Anantharaman) 
 ((tim.kelly@thomsonreuters.com; +813-6441-1311;)) 
 
Keywords: KIRIN HOLDINGS COCA COLA EAST/