Asahi Chemical Industry Co. and Japan Tobacco Inc. have reached an agreement to transfer Asahi's food business operations to the tobacco giant, including Asahi Foods Corp. and seven other subsidiaries, on July 1, the two firms announced Wednesday.
Asahi's food units are expected to generate total annual sales of 48 billion yen for fiscal 1998, which ends in March, accounting for 4 percent of the firm's groupwide sales.
The companies declined comment on the price of the deal, but it is expected to amount to between 20 billion yen and 30 billion yen, according to industry sources.