Kirin Withdraws Proposal to Buy Coca-Cola Amatil

Tokyo, Feb. 9 (Jiji Press)--Japan's Kirin Holdings Co. <2503> said Monday the beer and beverage group has withdrawn a proposal to acquire Australian beverage maker Coca-Cola Amatil Ltd.

Kirin said it has concluded that any further talks on the offer are
not beneficial.
Last November, Kirin said major Australian brewer Lion Nathan Ltd.,
a Kirin affiliate, aims to buy Coca-Cola Amatil for 8 billion Australian
dollars.
Kirin had expected the deal to help save 100 million to 130 million
Australian dollars in costs a year by having Coca-Cola Amatil and Lion
Nathan integrate production and logistics facilities.
But the Coca-Cola Amatil side, including top shareholder Coca-Cola
Co. of the United States, has opposed the offer, saying the price was too
low.
Backed by the yen's strength, Japanese beer companies have rushed
to acquire food and beverage firms overseas, in Oceania particularly, to
fuel growth.
Last October, Suntory Ltd. agreed to buy New Zealand's Frucor
Beverages Group Ltd. Asahi Breweries Ltd. <2502> in December struck a deal
to acquire Schweppes Australia from major British confectionery maker
Cadbury PLC.