Japanese drinks giants Kirin Holdings and Suntory are close to reaching merger terms, creating one of the world’s largest beverage and food companies.

A merger would have huge implications for New Zealand, possibly involving an investigation by the Commerce Commission for competition issues.

Kirin is the parent company of brewing, wine and spirits company Lion Nathan, while Suntory-owned Frucor is a leader in soft drinks and juices.

Lion Nathan shareholders have given Kirin’s $A3.3 billion takeover of the Australasian drinks giant the thumbs up.

The takeover – which will see the Japan-based Kirin buy out the 53% stake in Lion Nathan that it does not already own - has already gained regulatory approvals in Australia and New Zealand.

The long, slow slide towards one giant beverage mega-company could be one step closer, with rumours flying that a merger between Kirin and Suntory Group could be on the cards.

The Japanese drinks companies both have a strong footprint in the New Zealand market, with Kirin owning brewer Lion Nathan, while Suntory recently purchased Frucor and its product range, which includes Fresh Up, Just Juice, V, Frank and Mizone.

Lion Nathan’s New Zealand shareholders need to keep an eye on the company’s share price if they are to maximise their return from a proposed $A2.5 billion takeover by Japanese brewer Kirin.

Lion Nathan shares came out of a trading halt this morning after releasing the agreed terms of Kerin’s offer for the remaining 53% of Lion.

Kirin’s offer is worth $A12.22 a share, including $A11.50 in cash, and Lion dividends totaling A72c if the deal goes ahead.

At today’s exchange rate the offer equates to $NZ15.55.

The public has given a thumbs down to the food police by putting an Italian chocolate-maker, Ferrero, on top of an annual survey of the world's most reputable companies.

In fact, food and beverage companies – who are under attack from a host of lobby groups over obesity, safety and alcoholism issues – figure highly on the list prepared by the Reputation Institute, a research firm.

For example, US-based Kraft Foods and General Mills are eighth and 13th respectively. Mexico’s biggest baker, Grupo Bimbo, is 17th with 80 points, which is considered excellent.

Lion Nathan has again called a trading halt in the midst of its final round of negotiations with Kirin over its takeover bid, alleging that the content of its negotiations may have been leaked.

Company secretary Dennis Makeig made the request to the ASX this afternoon, which was accepted by the Australian exchange.

Any further information concerning the alleged leak was not made public, but ASX regulators have obviously deemed it worthy of a halt.