On Monday, Suntory Holdings Ltd announced that it would buy American spirits maker Beam Inc in a cash deal valued at $13.6 billion. The transaction would make the Japanese firm the third largest whiskey spirits company in the world, wrote Reuters.

The deal's total value is pegged at $16 billion including Beam's net debt. Beam's portfolio includes Maker's Mark and Jim Beam bourbons, Sauza tequila, and Courvoisier cognac. Suntory's products include Yamazaki, Hibiki, Kakubin, and Hakushu whiskies, Midori liqueur, and Bowmore Scotch whisky, the report detailed.

The International Wine & Spirit Research said that Suntory will become the fifth biggest malt whiskey maker by volume upon completion of the acquisition deal. The Japanese company will also become the third biggest whiskey firm in the world, the report explained.

As their home market grows smaller, Japanese beverage makers are becoming eager to expand overseas in a quest for growth, the report added.

Suntory plans to fund the deal with available cash. In addition, the company has secured a financing commitment from the Bank of Tokyo-Mitsubishi UFJ, Reuters reported.