Ajinomoto to Fully Acquire Calpis
Leading Japanese food-seasoning firm Ajinomoto is to turn health drink maker Calpis Company into a wholly owned subsidiary to strengthen its health food and drink division.
The presidents of the two firms jointly told reporters on Monday that Ajinomoto, which is Calpis's top shareholder with a stake of some 25 percent, would absorb the health drink producer in October through an equity swap.
Ajinomoto President Norio Yamaguchi said it aims to speed up decision-making as well as strengthen its health-food products division by making use of Calpis's expertise in developing health drinks.
Mr Yamaguchi said the domestic food and drink market is expected to shrink, but he believes that the health food market will continue to grow.
He expressed the hope that the merger will enable the two companies to respond better to changing consumer demand.
Our economics reporter says the two companies agreed to join forces to better meet the needs of Japan's increasingly aging society as well as the demands of supermarket chains undergoing mergers.