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Jim Beam Purchased by Japanese Conglomerate
Friday, February 7, 2014

Whiskey brewed in Kentucky appears to be growing in popularity on both a national and international scale. This may be behind the acquisition of Jim Beam by the Japanese company, Suntory Holdings Limited. Kentucky Bourbon's whiskey has been particularly popular in markets like Japan.

Suntory has agreed to purchase Jim Beam for $13.6 billion. With the company paying a premium concerning Jim Beam's shares, the entire deal is said to be worth approximately $16 billion.

Suntory would like for the corporate acquisition to help in its global growth expansion. This purchase by Suntory would make it the third largest acquisition by a Japanese business of an overseas company. Suntory investors already have ownership in a number of other brands of liquor.

Without question, any merger or acquisition involving this sort of money needs to be carried out with as few glitches as possible. Businesses look at these acquisitions as investments rather than costs. Investors also hope that such deals will lead to further business and expansion opportunities. At the same time, those running each company will want to retain a certain amount of control over the business.

Regulations, court rulings and federal oversight of such acquisitions are constantly evolving. Businesses involved in mergers or acquisitions require the assistance of corporate attorneys that keep up on these changes.

These attorneys are needed from the time an acquisition is first proposed until long after the transaction is completed. Negotiations will need to be conducted, contracts and corporate paperwork will need to be reviewed and prepared, and state, federal and even international regulations will need to be complied with.

Source: Industry Leaders Magazine, "Japan's Suntory Limited purchases Jim Beam for $16 billion," Laura Gomez, Jan. 21, 2014

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