RPT-UPDATE 3-Japan's Suntory says considering merger with Kirin

(Repeats to fix format)

* Deal would create food/drinks giant with $41 bln sales

* Merger seeks to bolster Japan ops, overseas growth-Nikkei

* Merged entity would control half of Japan's beer market

* Kirin, Suntory say no decision made

* Kirin up 8.2 pct, other brewers also rise

By Nathan Layne

TOKYO, July 13 (Reuters) - Japanese brewer Suntory Holdings Ltd said on Monday it was considering options including a merger with larger rival Kirin Holdings Co (2503.T), which would create one of the world's largest beverage and food firms.

Kirin and unlisted Suntory are in talks to merge under a holding company, seeking to strengthen their operations in a mature Japanese market and accelerate expansion into growing overseas markets, the Nikkei business daily said.

The news sent shares of Kirin soaring 8.2 percent to a nine-month high.

"If a merger is realised, that would give them the market share to take leadership in pricing and help their soft drinks businesses -- a chronic weak spot in a ultra-competitive market," said JP Morgan analyst Naomi Takagi.

"It's a huge positive if they can do it."

The two aim to agree on the deal this year, the Nikkei said citing unidentified sources.

Suntory spokeswoman Naoko Tsuda said the company is considering various options, but that nothing had been decided.

When asked if a merger with Kirin was one of the options under consideration, she said, "Yes."

Kirin spokesman Mitsutake Matano declined comment on the possibility of a merger, repeating a statement that while Kirin is working with Suntory on procurement, distribution and other business activities, nothing had been decided.