Dutch beer giant Heineken has entered into an agreement with Japan-based Kirin Holdings to acquire Brazil-based beer and soft drinks producer Brasil Kirin for €664m.

The company plans to enhance its presence in the country, improve scale, and support its portfolio through a strong commercial platform.

With Brasil Kirin's portfolio being complementary to Heineken's current beer business, the transaction is expected to boost the further growth of Schin, Bavaria, Kaiser, Amstel, and Devassa brands.

Heineken's chairman and chief executive officer Jean-Francois van Boxmeer said: "This transaction marks a step-change in scale in an exciting beer market, building on our success to date in the premium segment and strengthening our platform for future growth.

"It reiterates our commitment to the Brazilian market and confidence in our ability to generate attractive returns over the long-term across all segments of the market.

"It reiterates our commitment to the Brazilian market and confidence in our ability to generate attractive returns."

"I look forward to welcoming our new colleagues from Brasil Kirin into Heineken and working with them to take the combined business forward."

Brasil Kirin has 12 production facilities and its own distribution network, while Heineken operates five breweries in the country.

Heineken intends to provide cost synergies from the transaction via production efficiencies such as logistics and brewery optimisation, as well as by improving selling, general, and administrative expenses.

In addition to beer, Brasil Kirin manufactures various soft drinks such as carbonated drinks and bottled water.