Asahi Breweries, a Japan-based brewing company, has signed a binding share purchase agreement to purchase all the issued shares of P&N Beverages Australia (P&N), an Australian soft drinks company, for a price of A$364m (US$322.8).

According to the agreement, Asahi Holdings (AHA), a subsidiary of Asahi in Australia, will acquire all the issued shares in P&N.

Asahi believes that post Schweppes acquisition, which happened in April 2009, the acquisition of P&N will bolster the company's Australian and overseas soft drinks business further.

The company, by consolidating P&N and Schweppes, will leverage synergies across the Asahi group of companies and build a strong base in Australia that will help the group grow in Oceania.

The purchase price will depend on price adjustments at completion, based on the level of working capital, cash on hand and interest bearing debts at the time of completion of acquisition of P&N.

The company said that P&N and Schweppes will combinedly set up an integration executive committee to start preparations in order to realize synergies.

The deal is contingent upon regulatory approvals from the Australian Competition and Consumer Commission and the Foreign Investment Review Board, and is anticipated to be completed by the end of November 2010.

P&N's product family includes carbonated soft drinks, juice, water and cordials, while its major brands include Frantelle Spring Water, Extra Juicy, Pop Tops, Pub Squash, Waterfords Mineral Water, Tru Blu carbonated soft drinks and Wicked.

The company also manufactures a range of private label beverages for major grocery customers, and operates four manufacturing sites and five distribution centres.