Heineken confirms plans for Kirin Brasil takeover

Dutch beer giant Heineken confirmed rumors that it is working on acquiring Brazilian brewery Kirin Brasil in a short press release on Friday. Should Heineken take over the Brazilian brewery, the Dutch brewer's market share in the country would double, BNR reports.

"In response to speculation in the media over Kirin, Heineken can confirm that it is in talks with Kirin about the Brazilian branch. These discussions are ongoing and it can not be said that there will actually be an agreement", the Dutch beer giant said in a press statement.

Kirin Brasil is currently owned by a Japanese company, who acquired it in 2011. It is currently number three on the Brazilian market. Should Heineken succeed in acquiring it, the Heineken share on the Brazilian market will double from 9 to 18 percent.

Rumors have the acquisition price at a low $800 million. According to BNR, the price is so low because Kirin Brasil is not in an excellent position at the moment. The Brazilian market itself is currently difficult, with an economy that is in recession and government spending even being frozen for 20 years.