TOKYO (Dow Jones)–Kirin Holdings Co. (2503.TO) confirmed Tuesday that it is in merger talks with Suntory Holdings Ltd., but added that nothing has yet been decided and discussions are still at an early stage.

A deal between the two companies would create a formidable competitor to the world’s leading brewer Anhesuer-Busch Inbev N.V.

The Nikkei reported Tuesday that Suntory President Nobutada Saji said that Suntory and Kirin aim to reach an agreement as early as the year-end to integrate operations as equal partners.

“We’re at the stage where we’ve taken half a step,” Saji told reporters early Tuesday, according to the Nikkei.

 -By Yoshio Takahashi, Dow Jones Newswires; 813-6895-7561; yoshio.takahashi@dowjones.com

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