EC clears Diageo-Pernod deal

Related tags Pernod ricard Diageo

Diageo - the British premium drinks company - and Pernod Ricard -
the French drinks group - overcame the first regulatory hurdle in
their £5.6bn takeover...

Diageo - the British premium drinks company - and Pernod Ricard - the French drinks group - overcame the first regulatory hurdle in their £5.6bn takeover of Seagram's drinks businesses on Tuesday when the European Commission cleared the deal. The European Commission said Diageo and Pernod Ricard had agreed to sell the Four Roses Bourbon brand to assuage competition concerns, the Financial Times reports. When Diageo and Pernod Ricard announced the deal in December, they tried to split the Seagram spirits and wine brands in a way that would minimise the risk of regulatory hostility. Diageo is due to take Captain Morgan rum and Seagram's 7 Crown, the US whiskey, the Crown Royal and VO Canadian whisky brands, plus wine assets. Pernod Ricard's haul will include Chivas Regal, The Glenlivet and Royal Salute. Diageo will distribute Captain Morgan rum separately from its other spirits in Iceland. Its rights to Captain Morgan are being challenged in court by Allied Domecq and Destileria Serralles, the Puerto Rican distillery. Diageo said it was "pleased"​ by the European regulatory clearance but added: "We have got two more to go."​ Diageo and Pernod Ricard must win further approval from US and Canadian competition authorities. The companies hope that the deal will close by the end of July. One of the first disposals from the Seagram portfolio is likely to involve Oddbins, the wine retailer. Passport scotch and Sandeman port are also on the block. Source: Financial Times

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