Jim Beam sells for 16 billion dollars

Japanese whisky maker Suntory is snapping up US spirits group Beam for 16 billion dollars.

Suntory, which makes Yamazaki and Hakushu whiskies and Bowmore Scotch whisky, is buying Beam for $83.50 a share, representing a 25% premium to Beam's $66.97 closing price on January 10th.

Beam, which started life in 1795 and floated on the New York Stock Exchange in October 2011, makes brands such as Jim Beam, Maker's Mark and Knob Creek bourbon, Teacher’s and Laphroaig Scotch whiskies, Courvoisier cognac and Sauza tequila.

The pair said the deal, which should complete in the second quarter of 2014 subject to shareholder and regulatory approval, would create the world's number three premium spirits maker.

Matt Shattock, President and Chief Executive of Beam Inc, said: “With particular strength in Bourbon, Scotch, Canadian, Irish and Japanese whisky, the combined company will have unparalleled expertise and portfolio breadth in premium whisky, which is driving the fastest growth in Western spirits.”

Suntory, which was founded in Osaka in 1899, bought New Zealand drinks company Frucor Group and France's Orangina Schweppes Group in 2009 as well as GlaxoSmithKline’s Lucozade and Ribena drinks in 2013.

The deal builds on M&A momentum in 2013 that has continued in 2014 with Amec's acquisition of Foster Wheeler and Fiat's tie-up with Chrysler.