Japanese brewing1 and food groups Kirin and Suntory are considering a merger3.
日本酿酒公司、食品集团Kirin和Suntory考虑合并。
If the merger goes ahead it will create the world\'s fifth largest food group
The move would create the world's fifth-largest food group by sales, just behind Kraft Foods and Pepsico.
Analysts5 welcomed the announcement, saying a merged6 firm would be able to dominate in Japan's fiercely competitive food and drinks market.
While Suntory is privately7 owned, shares in Kirin rose 8.4% following the news. If the two firms agree to merge2, the deal will need regulatory approval.
"If a merger is realised, that would give them the market share to take leadership in pricing and help their soft drinks businesses - a chronic8 weak spot in a ultra-competitive market," said JP Morgan analyst4 Naomi Takagi.
"It's a huge positive if they can do it."