Yamazaki Baking Co. plans to acquire a stake of more than 60 percent in struggling confectionary maker Tohato Inc., sources said Sunday.
Such a deal would make the Yamazaki Baking group, which has Yamazaki-Nabisco Co. under its wing, the nation's second-largest manufacturer of snacks and confectionary after Calbee Foods Co.
The plan is expected to be formally announced as early as Monday.
Under the plan, Yamazaki Baking will purchase a 53.1 percent interest in Tohato from investment fund Unison Capital Inc. and an additional 9.2 percent from trading house Marubeni Corp., the sources said.
Toy and game maker Namco Bandai Holdings Inc., which has a 37.7 percent stake in Tohato, is also likely to sell part of its holdings to Yamazaki Baking, they said.
The total value of these deals has yet to be finalized, they added.
In March 2003, Tohato, known for such hit products as its Caramel Corn snack, applied for court protection from creditors following the failed operation of a golf course it started during the asset-inflated bubble period.
Unison Capital and the former Bandai Co. have since acquired Tohato's confectionary business and set up a new company under the name of Tohato to turn its operations around.
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