Coca-Cola Amatil has called off its $A7 billion takeover talks with Lion Nathan, saying its US-based parent has rejected the proposal.
Coca-Cola Company, which owns a 30% stake in Australia-based Coca-Cola Amatil (CCA), has written to Lion Nathan’s major shareholder, Japan’s Kirin Holdings, calling off discussions, CCA says in a statement.
Australian drinks company Coca-Cola Amatil is seeking permission from the Commerce Commission to acquire cordial maker Baker Hall.
The New Zealand unit of Coca-Cola Amatil wants to buy the bottling production line, brands and business assets of Baker Hall from Old Fashioned Foods Ltd.
Lion has 52 percent of the New Zealand beer market while Coca-Cola Amatil has 53 percent of the New Zealand non-alcoholic ready-to-drink market and 75 percent of the carbonated soft drink market.
Lion Nathan Ltd. and Coca-Cola Amatil Ltd. have been in merger talks the past six months that might create an A$11 billion ($7.1 billion) beverages company covering everything from beer to water, juice and soft drink, the Australian Financial Review reported.
The talks also include Lion Nathan’s majority stakeholder Kirin Holdings Co Ltd. and The Coca-Cola Company, the newspaper reported, citing people it didn’t name. Macquarie Capital Advisers is working with Coca-Cola Amatil while Caliburn Partnership is advising Lion Nathan, the Review said.