Japan?s Suntory Holdings Limited has reportedly denied being in early discussions to acquire US brewing major The Boston Beer Company, Inc. (NYSE:SAM). Boston Beer?s share price shot up around 22% last week, its highest price since March, following reports the two drinks companies were in early talks over a deal. The news was first published by The Wall Street Journal on Friday (31 May), citing ?people familiar to the matter?.

However, a Suntory spokesperson reportedly poured water on the speculation in a comment to news agency Bloomberg. Boston Beer has a market capitalisation of around $3 billion, according to The Wall Street Journal, which said a deal would ?likely include a premium to that?. The article also noted talks may not result in a deal or that another suitor could emerge.

Nadine Sarwat, analyst at AllianceBernstein, said: ?We believe that while it might be a good plan on paper, in practice the devil would be in the detail.? She added the performance of Suntory?s existing brands was ?uncertain?. ?Due to the US?s three-tier system and existing state laws that mandate beer and spirits-based alcohol (generally) be sold through different distributors and retail outlets, revenue and cost synergies would be limited to standard back-office cost-cutting,?

she added. Just Drinks has contacted both companies for comment.