Suntory’s Beam buy-out gets regulatory approval

Suntory’s US$16 billion acquisition of Beam Inc has moved a step closer to completion after the deal was granted regulatory clearance by US authorities.

Suntory’s proposed US$16bn acquisition of Beam Inc has been granted regulatory approval

Maker’s Mark and Courvoisier Cognac producer Beam announced yesterday that the US Federal Trade Commission had granted early termination of the contractual waiting period to review its acquisition by Suntory.

Japan’s Suntory agreed in January this year to buy the Illinois-based firm for US$16bn – a deal which would see it become the world’s third largest drinks company behind Diageo and Pernod Ricard.

The transaction remains subject to regulatory clearance in the European Union, the approval of Beam stockholders and customary closing conditions.

Since plans for the acquisition were announced, a number of Beam Inc shareholders have launched legal action to stall the buy-out under claims it short changes investors.

In response, Beam Inc branded allegations that the deal is “potential unfair” as “baseless” and “without merit”.

The company said that a “special meeting” with its stockholders has been scheduled for Tuesday, 25 March to consider and vote on the transaction.

“This is another important step towards completing the acquisition of Beam for US$83.50 per share, and the transaction remains on track to close in April,” said Matt Shattock, president and CEO of Beam Inc.

Suntory said the once the deal is completed, it aims to focus on growth in the US with its new, combined portfolio of brands and expanded distribution network.