Allied Domecq approves takeover by Pernod |
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Published
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Wed, 06 Jul 2005 00:05
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LONDON: British spirits group Allied Domecq's shareholders Monday approved a 7.6 billion pound cash-and-share take-over proposal by French firm Pernod Ricard.
The approval will see the creation of a unified liquor conglomerate ready to take on the No 1 player in the field, Diageo Plc. The deal has regulatory clearances from European Union and United States authorities. Pernod shareholders had earlier approved the plan.
Pernod's fund requirements for the buy-out will be mainly met by its U.S. partner Fortune Brands which will buy Allied brands like Sauza tequila, Maker's Mark bourbon and Courvoisier cognac. Pernod will get Ballantine's whisky, Beefeater gin and Kahlua liqueur. It will have its own Chivas Regal whisky and Martell cognac.
The deal agreed in April this year envisages payment to Allied shareholders of 545 pence a share in cash and 0.0158 new Pernod shares for each Allied share.
In a sequel to the deal, Pernod had by an agreement sold its Bushmills Irish whisky to Diageo. It also offered it an option to buy Allied's Montana New Zealand wine. To gain the regulatory approval, Pernod also agreed to sell scotch whisky brands such as Glen Grant malt and Portuguese brandies.
Allied Domecq's chairman Gerry Robinson told shareholders that, "In these increasingly challenging market conditions, your board considers that the need for further consolidation in the distilled spirits industry has become increasingly apparent."
The acquisition is the biggest in liquor industry after the 1997 formation of Diageo through a merger.
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