Brown-Forman and Pernod Ricard have admitted that they are in discussions about a possible “business combination”, confirming reports that broke late yesterday (26 March).
The two companies followed claims made by Bloomberg and Reuters on Thursday – both of which cited unnamed sources – with statements of their own, issued within 50 minutes of each other. Both press releases acknowledged the “recent market rumours/speculation” and confirmed the claims were correct.
While neither brand owner detailed when their negotiations had commenced, or where they are taking place, both Brown-Forman and Pernod Ricard framed their potential tie-up as being “akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders”.
There was also recognition by both companies that any synergies would be “significant”.
Pernod Ricard said: “The contemplated combination would create a global spirits leader with enhanced scale, a powerful brand portfolio and a balanced geographic footprint, all anchored by two iconic families.
“Operational synergies would be significant, leveraging Brown-Forman’s iconic brands, including Jack Daniel’s, and Pernod Ricard’s global distribution strength and exposure to [the] highest growth potential markets.”
Concluding that “there can be no assurance that any such agreement will be reached”, the pair stated that no further comment would be made “until an agreement is reached or discussions are terminated”.
Pernod Ricard is the next to report its results, with figures for fiscal Q3 – the three months to the end of March – scheduled to be announced on Thursday 16 April.
- To read Brown-Forman’s press release, click here.
- Pernod Ricard’s official statement can be viewed here.
