Politics

Japanese brewer Kirin files arbitration case to sort out its Myanmar business


Japanese beer company Kirin Holdings said on December 6 that it has filed for commercial arbitration to terminate its joint venture with its Myanmar business partner, junta-controlled Myanma Economic Holdings, calling for a “fair and just” process to end its involvement in the beer business with the entity, Kyodo News reported. A Kirin subsidiary in Singapore took the action with the Singapore International Arbitration Center after the company failed to negotiate successfully on the future oeprations of Myanmar Brewery, the biggest beer company in the country and one of the two ventures Kirin runs with the Myanmar entity, the other…

Japanese beer company Kirin Holdings said on December 6 that it has filed for commercial arbitration to terminate its joint venture with its Myanmar business partner, junta-controlled Myanma Economic Holdings, calling for a “fair and just” process to end its involvement in the beer business with the entity, Kyodo News reported.

A Kirin subsidiary in Singapore took the action with the Singapore International Arbitration Center after the company failed to negotiate successfully on the future oeprations of Myanmar Brewery, the biggest beer company in the country and one of the two ventures Kirin runs with the Myanmar entity, the other being Mandalay Brewery, the fate of which is still being discussed between the two parties.

Kirin said in a statement that it made repeated efforts to negotiate with Myanma Economic Holdings to end the partnership, but they had been “uncooperative in the negotiations, effectively rejecting our proposals.”

Deteriorating relations with Myanmar’s military-run businesses

Instead, Myanma Economic Holdings unilaterally filed a petition with a Yangon district court on November 19 to liquidate Myanmar Brewery, a company owned 51 per cent by Kirin and 49 per cent by the Myanmar entity.

“Kirin Holdings conveyed that it would firmly protest this unjustified motion, made in disregard of the joint venture agreement, as well as in violation of Myanmar laws and regulations,” the statement said.

Despite Kirin’s action, however, it is unknown how the Myanmar partner will respond and whether it would comply with a decision issued by the Singapore arbitration center.

According to the statement, Kirin accused its Myanmar partner of providing “welfare fund management for the [Myanmar] military,” which seized power in a February 1 coup.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

close