Japanese beverage company Kirin Holdings (Kirin) has announced that it has terminated its joint venture (JV) with Myanmar Economic Holdings Public Company (MEHL) in Myanmar, which provides the service of welfare fund management for the military.

The decision was taken by the beverage firm after Myanmar’s military overthrew the government of Aung San Suu Kyi and handed over the power to its top general.

Kirin Holdings Company president and CEO Yoshinori Isozaki said: “Kirin Holdings Company is deeply concerned by the recent actions of the military in Myanmar, which are against our standards and Human Rights Policy.

“We decided to invest in Myanmar in 2015, believing that, through our business, we could contribute positively to the people and the economy of the country as it entered an important period of democratization.

“Our aspiration was and remains to create a positive impact on Myanmar’s economy and society through our operations at Myanmar Brewery Limited and Mandalay Brewery Limited.”

In partnership with MEHL, Kirin holds a stake in Myanmar Brewery, as well as in the Mandalay Brewery.

Isozaki further added: “Given the current circumstances, we have no option but to terminate our current joint-venture partnership with Myanmar Economic Holdings Public Company Limited, which provides the service of welfare fund management for the military. We will be taking steps as a matter of urgency to put this termination into effect.”

Kirin said that will provide more updates as soon as practicably possible.

In February 2017, Kirin Holdings Singapore (KHSPL) unveiled its plans to make a majority investment in a new joint venture for the purchase of Mandalay Brewery (MDL).

KHSPL will transfer 4% of all outstanding shares of its holdings in Myanmar Brewery (MBL) at a price of $40m to Myanmar Economic Holdings (MEHL), which is the current parent firm of MDL.

KHSPL purchased 55% of all outstanding shares in MBL in august 2015. MBL is currently operated by KHSPL, with MEHL as a joint partner.