Brewer Kirin calls for arbitration to end deal with Burmese military entity

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Kirin Holdings Co. on Monday announced that it has filed for commercial arbitration to end its joint venture partnership with Myanma Economic Holdings Public Co., calling for a “fair and equitable” process to end its deal in the trade of beer with the entity linked to the Burmese army. .

A Kirin subsidiary in Singapore took action with the Singapore International Arbitration Center after the company failed to negotiate the treatment of Myanmar Brewery Ltd., the Southeast Asian country’s largest brewing company and one of two businesses Kirin runs with Myanmar. entity.

A 2016 archive photo shows a factory of Myanmar Brewery Ltd. in Yangon. (Photo courtesy of Kirin Holdings Co.) (Kyodo)

The other project concerns Mandalay Brewery Ltd., whose fate is still being discussed between the two parties.

Kirin said in a statement that the Tokyo-based company made repeated efforts to negotiate with Myanma Economic to end the partnership, but the Burmese entity “did not cooperate in the negotiations, effectively rejecting our proposals. “.

On top of that, Myanma Economic unilaterally filed a petition with a Yangon District Court on November 19 to liquidate Myanmar Brewery, a company 51% owned by Kirin and 49% owned by the Burmese entity.

“Kirin Holdings has indicated that it will strongly protest the unwarranted motion, made in defiance of the joint venture agreement as well as in violation of Myanmar laws and regulations,” the statement said.

Kirin acquired Myanmar Brewery in 2015.

Despite Kirin’s action, however, it is unclear how the Burmese partner will react and whether he will comply with a decision made by the Singapore arbitration center.

Kirin accused the Burmese entity of “managing the welfare funds for the (Myanmar) army,” known as Tatmadaw, who seized power in a coup on February 1 that toppled civilian leader Aung San Suu Kyi and her party, the National League for Democracy. .


Associated coverage:

Burmese court sentences Suu Kyi to 4 years in prison

Burmese army vehicle crashes into protesters, 5 dead

Myanmar’s Suu Kyi slapped over new bribery charge



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