Dutch brewing giant Heineken confirmed today it is in talks to purchase Brasil Kirin, Brazil’s second-largest brewer.
Japan's Nikkei newspaper reported Heineken will pay around 100bn yen (£705.5m) for the business. Kirin said the report was not based on any comments made by the company.
"These discussions are ongoing and there can be no certainty that an agreement will be reached," the company said in a statement.
Brasil Kirin's parent company Kirin Holdings Company said in a statement: "While Kirin continues to primarily focus on the self-growth acceleration of Brasil Kirin, Kirin is also considering other alternatives including a strategic partnership."
"Kirin is reviewing all options regarding a potential transaction," the company said. Brasil Kirin brews Shin, Hubaina and Devassa beers.
In December, the UK's Punch Taverns agreed to a £403m offer from Heineken and its investment partner Patron Capital following a bidding war with entrepreneur Alan McIntosh, one of Punch's founders. The two sides had until 11 January to make firm offers.
Punch shareholders will meet on 10 February to vote on the proposed takeover bid, according to pub trade magazine the Morning Advertiser.