Kirin's negotiation was pinned on the proposition that the new integrated entity would be managed as a listed company, so that transparency and appropriate management independence will be provided. However Suntory, which is a non-listed enterprise and whose founding family owns about 90% of the company shares, held a different view on this matter.
Suntory admitted disparity of accords of the two companies including ratio of integration, and considered not to go ahead with the desirable new integrated company. Kirin had proposed Suntory a merger ratio of 0.7 of a share for every Kirin share in the new integrated company, while Suntory had insisted on a 0.9 ratio, The Mainichi Daily News reported.
Kirin stated that even if the negotiations were to continue, they wouldn't have possibly been ended with the establishment of a company that would meet Kirin's goal of developing as a 'leading international company' and gain the understanding and approval of its domestic and overseas customers, employees, shareholders and other stakeholders. Hence the company has decided to terminate the negotiations.