Japan's Asahi to acquire Malaysia's Etika Dairies

In order to expand its operations in Southeast Asia, Asahi Group Holdings Ltd said it would purchase Etika Dairies Sdn Bhd in Malaysia for THB10.7 billion (US$329 million).

Asahi Group, a Japanese food and beverage group, which is well known for its beer in Japan, is seeking to boost condensed milk sales in the region through the acquisition of the subsidiary of Malaysian food giant Etika International Holdings Ltd.

Etika exports its dairy products to other Southeast Asian countries, the Middle East and Africa, and also operates in Vietnam and Indonesia, Asahi said in a statement.

In Southeast Asia, "dairy products, including condensed milk, has been deeply ingrained in the food and beverage culture for a long time and stable growth of the dairy market is expected into the future," Asahi said.