Heineken N.V said on Monday it has agreed to acquire the loss making business of Japanese brewer Kirin Holdings Limited Brazil unit for $706m. Including debt, the Dutch brewer said it would pay €1.025bn for the transaction.

Kirin said it was exiting the Brazilian beer market citing a “stagnant and competitive” market.

“Considering various risks associated with (the) Brazilian economy and (the) stagnant and competitive situation in (the) Brazilian beer and soft drink markets, Kirin has come to the conclusion that there are certain limitations in transforming Brasil Kirin into a sustainable and high-profitable business on its own,” it said in a statement.