Suntory Holdings, a Japan-based beverage firm, has agreed to acquire American spirits maker Beam for around $16bn.
As per the agreed terms, both the companies aim to achieve growth in markets across the world, including the US.
The transaction is expected to be completed in the second quarter of 2014, following Beam stockholders' approval, regulatory approvals and other customary closing conditions.
Commenting on the transaction, Beam president and chief executive officer Matt Shattock said that together the companies will be global leaders in distilled spirits with the #3 position in premium spirits and a dynamic portfolio across key categories.
"With particular strength in Bourbon, Scotch, Canadian, Irish and Japanese whisky, the combined company will have unparalleled expertise and portfolio breadth in premium whisky, which is driving the fastest growth in Western spirits," added Shattock.
The transaction is expected to record $4.3bn in annual net sales of spirits products.
