Official reports have confirmed that on Monday, Japanese beer manufacturers Kirin Holdings and Suntory ended their plans of coming together to create one of the world's biggest food and beverage manufacturing company, and the reason given has been that there are marked differences over governance and a merger ratio.

The announcement has managed to knock Kirin's shares down by 5%.

It has been reported that Kirin was not able to reach an agreement with Suntory on how to ensure that there is management independence and transparency of a merged firm, and also, it seems that it was unlikely that the proposal would gain understanding of shareholders.

While Kirin President Kazuyasu Kato is scheduled to meet media at 1:30 p. m., local time, on Monday, Suntory chiefs have said that they have no plans of offering a briefing.