FACTBOX-Food sector consolidation in 2009

Tue Sep 22, 2009 10:27am EDT

Sept 22 (Reuters) - Japanese brewer Suntory [SUNTH.UL] has made a binding bid for soft drinks maker Orangina Schweppes, its private equity owners said, in a sign buy-out houses may find it easier to exit investments.

Suntory is itself the target of a takeover bid from Japanese brewer Kirin (2503.T: Quote, Profile, Research, Stock Buzz).

The following are some of the other major M&A deals in the food sector announced this year:


* CADBURY-KRAFT:

On Sept. 7, Kraft Foods Inc (KFT.N: Quote, Profile, Research, Stock Buzz), the world's second-largest food company, launched a cash-and-stock bid for Cadbury (CBRY.L: Quote, Profile, Research, Stock Buzz) in an attempt to create the world's largest confectionery group.

Cadbury, the world's second largest confectionery group, rejected the offer, with Chairman Roger Carr saying the prospect of being absorbed into Kraft was unappealing.

Kraft's bid was originally worth $16.7 billion (10.2 billion pounds) when it disclosed its proposed offer on Sept. 7, though a decline in Kraft's share price has since lowered the value of the bid.

Cadbury Chief Executive Todd Stitzer told the Wall Street Journal on Monday there were some "complementary elements" in the two companies' portfolios, suggesting some softening in tone from Cadbury. But he said the British company's shareholders still reject the deal at the 9.9 billion pound ($16.2 billion) current price offered by Kraft.


* SUNTORY-KIRIN:

Japanese beer makers Kirin Holdings (2503.T: Quote, Profile, Research, Stock Buzz) and Suntory Holdings said in July they had begun preliminary talks to create a food and beverage giant with about $40 billion in annual sales, roughly the same size as U.S.-based Kraft Foods (KFT.N: Quote, Profile, Research, Stock Buzz) and Pepsico Inc (PEP.N: Quote, Profile, Research, Stock Buzz).

A Kirin executive said on Aug. 6 that both companies could agree as early as this year to the merger.


* LION NATHAN-KIRIN:

Shareholders in Lion Nathan Ltd LNN.AX, Australia's second-largest brewer, approved on Sept. 17 a $3 billion takeover by Japanese brewer Kirin (2503.T: Quote, Profile, Research, Stock Buzz), to create Australia's largest food and drinks group.

The deal has already received enough proxy votes to give it 97.5 percent approval, the company said.

Kirin Holdings already owned 47 percent of Lion and made an offer in May worth A$12.00 a share, or A$3.4 billion ($2.97 billion), for the rest of the group. (Writing by Jijo Jacob, Bangalore Editorial Reference Unit; Editing by David Cutler and Simon Jessop)