Suntory Holdings, a massive Japanese beverage company, is acquiring American spirits maker Beam for $16 billion, creating one of the largest premium spirits companies in the world.
The all-cash deal values Beam at $83.50 per share, a 25% premium over Friday's closing price.
Shares in Beam shot up in premarket trading Monday after the deal was announced.
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, provided it receives all necessary shareholder and regulatory approvals.