Kirin Holdings Co., Japan's largest beverage maker, agreed Monday to pay 3.5 billion Australian dollars, or $2.5 billion, for the rest of Lion Nathan Ltd., taking over Australia's second-largest brewer as beer sales slow at home.

The offer for the 54 percent Kirin doesn't already own is worth AU$12.22 a share, Lion Nathan said in a statement. The Tokyo-based company's bid is 47 percent more than Lion's price on April 22, the day before Kirin said it was making its offer.

Kirin, owner of Australia's largest milk processor and juice maker, wants to add beers such as Tooheys to limit declining demand in Japan, where sales are forecast to drop almost 1.7 percent this year.