Japan's Kirin Holdings said on Tuesday it will buy a company that holds a majority stake in Brazilian brewer Schincariol for 198.8 billion yen ($2.56 billion), as it looks for overseas growth amid a declining domestic picture.

Schincariol is Brazil's second-largest beer producer and third-largest carbonated soft drinks maker, known for its Nova Schin, Devassa Bem Loura, Glacial, Baden Baden and Eisenbahn brands.

The Tokyo-based company said the strategic purchase of Aleadri-Schinni Participacoes e Representacoes S.A., which holds a 50.45-percent stake in the family-run Brazilian brewer, will enable it to build a solid foothold in the rapidly expanding Brazilian market.

The 3.95-billion real acquisition is the latest in a string of deals for Japanese brewers as they search for growth opportunities in overseas markets to offset a declining domestic market, helped by the strength of the yen.

Although Kirin President Senji Miyake denied at a press conference that the yen's strength was behind the decision to buy Schincariol, the deal nevertheless gives Kirin access to Brazil's large and growing beer and soft drinks markets, valued at roughly 3 trillion yen each, the company said.