Suntory Buying Spirits Maker Beam for $13.62 Billion

Beam, the maker of Jim Beam and Maker’s Mark alcohol brands, has agreed to be acquired by Japan’s Suntory Holdings Ltd. for approximately $13.62 billion.

Shares of the spirits maker rose in Monday premarket trading.

Suntory will pay $83.50 per share, a 25 percent premium to Beam’s Friday closing price of $66.97. The companies put the deal’s value at about $16 billion, including debt.

Suntory has a portfolio of spirits, with whiskies including Yamazaki and Hakushu as well as Midori liqueur and other beverages.

Suntory already distributes Beam’s products in Japan. Beam distributes Suntory’s products in Singapore and other Asian markets.

Both companies’ boards unanimously approved the transaction, which is targeted to close in the second quarter.

It needs approval from Beam Inc. stockholders. (AP)

Kraft Warns of Velveeta Shortage


Kraft Foods is warning of a possible shortage in Velveeta.

The company says supplies of the popular processed cheese product are running low because of high demand.

And – with Super Bowl and award show viewing parties coming up, it’s a bad time for a shortage.

Word of the shortage comes after Ad-Age reported a Velveeta shortage at some east coast grocery stores. It’s unclear if other regions are also affected.