Japanese drinks giant Kirin said Monday it would withdraw from Myanmar, after a failed bid to disentangle its operations from a joint venture with a junta-owned company after last year's coup.
With international pressure building against the military since it ousted and detained civilian leader Aung San Suu Kyi and waged a widespread crackdown on dissent, the brewery becomes the latest foreign company to pull out of Myanmar.
Kirin said its decision came after months of wrangling following last February's coup, which prompted the company to express concerns about human rights and eventually seek to end its joint venture Myanmar Brewery Limited.
It had decided "to withdraw from the business in Myanmar in order to urgently terminate its joint venture partnership" with military-linked MEHPCL, the company said in a statement.
Myanmar Brewery, whose beverages include its flagship and ubiquitous Myanmar Beer brand, boasted a market share of nearly 80 percent, according to figures published by Kirin in 2018.
Kirin's attempts to terminate the partnership with MEHPCL were unsuccessful, and the Japanese drinks maker said in November it would contest a bid to dissolve their joint brewery over fears liquidation proceedings would not be fair.
On Monday, Kirin said it had taken "every measure to find a way forward that would allow it to continue to contribute to Myanmar's economy and society."
That included filing for arbitration in Singapore in a bid to end the joint venture and proceed without the military-linked partner.
"In the end, Kirin Holdings determined that it would be difficult to quickly terminate the joint venture in the manner it desires," the company added.
"Therefore, Kirin Holdings has now commenced and is proceeding with discussions with MEHPCL in order to withdraw from the business in Myanmar, giving top priority to the termination of the joint venture as soon as possible."
A junta spokesperson did not immediately respond to a request for comment.
Firms withdrawing
With the economy tanking and pressure mounting from rights groups, companies from France's TotalEnergies to British American Tobacco and Norway's Telenor have upped sticks or announced they will leave Myanmar.
