Brown-Forman and Pernod Ricard have withdrawn from their month-long discussions regarding a potential merger.
The two companies both released near-identical statements late today (28 April) stating that they had parted ways. The news comes almost a month to the day after the pair followed press speculation with confirmation that a possible “merger of equals” was the subject of negotiation.
The statements – Brown-Forman’s can be viewed here, while Pernod Ricard’s is available here – say the brand owners have “terminated discussions regarding a potential business combination, as the companies were unable to reach mutually agreeable terms”.
Brown-Forman added: “We intend to create long-term value for all stakeholders by focusing on our strategic and operational priorities. This includes unlocking future growth by expanding our geographic footprint, continuing to build brands that resonate with consumers and enhancing operational efficiency.”
Meanwhile, Pernod Ricard said it “remains fully focused and confident in its strategy and operating model, supported by strong and committed teams across the group to deliver sustainable long-term value for all stakeholders”.
Should a report by the Wall Street Journal earlier this month be correct, the parting of the pair could now leave the way open for Sazerac Co to table a bid to acquire Brown-Forman outright. The report cited unnamed sources claiming that Sazerac had “recently approached” Brown-Forman “about a potential deal”. Neither company would comment on the claim.
