(CNN) - Japanese beverage giant Suntory Holdings has agreed to purchase American spirits maker Jim Beam.
The all-cash deal is valued at $16 billion. Under the terms, Suntory will acquire all outstanding shares of Beam for $83.50 per share.
Beam stock shot up in premarket trading Monday after the deal was announced.
Suntory is known for whiskies, beers, wines and soft drinks.
Beam is known for its brand-name products, including Jim Beam bourbon, Maker's Mark whiskey and Courvoisier cognac.
The transaction is expected to close in the second quarter of the year.
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