Heineken has entered into an agreement with Kirin Holdings Company to acquire Brasil Kirin Holding, one of the largest beer and soft drinks producers in Brazil.

The transaction is expected to boost Heineken's footprint, scale, and brand portfolio.

Brazil is the fifth largest country in the world, with more than 200 million citizens.

In 2015, beer volume touched 139 million hectolitres, making it the third largest market globally.

"The transaction is expected to transform Heineken's existing business across the country."

Brasil Kirin operates 12 production facilities alongside its own distribution network. It has strong presence in the north and north east, where Heineken currently has less exposure.

Its portfolio includes Schin and Devassa. It also owns speciality brands Baden Baden and Eisenbahn, which will complement Heineken's existing premium portfolio.

Brasil Kirin also has a soft drinks business comprising carbonated drinks, bottled water, and other beverages. The soft drinks portfolio includes the iconic Itubaína brand.