Kirin, a Japanese brewer, will purchase Australian vitamin manufacturer Blackmores for A$1.88bn ($1.24bn; £999.4m) to expand into healthcare amid declining beer sales in Japan and stricter alcohol regulations.
Kirin stated that the acquisition of Blackmores would complement its current Health Science business.
The deal also gives Blackmores an exit as it has been struggling to recover sales since the pandemic.
Before Covid-19, the Australian natural health firm benefited from the practice of “daigou”, in which Chinese consumers bought goods abroad to take back to China.
“The Kirin Scheme represents an attractive, all-cash transaction,” the chair of Blackmores, Wendy Stops, said.
For Kirin, the deal is the latest in its efforts to diversify away from the alcohol business.
Beer sales in Japan have been falling for many years because of lifestyle changes among young people. Last year, the Japanese government launched a nationwide competition calling for ideas to encourage people to drink more alcohol.
At the same time, the World Health Organization has been calling for stricter rules on the global alcohol industry, urging governments to set higher prices to discourage drinking.