Word started swirling on Thursday that Brown-Forman and Pernod Ricard were in talks about some kind of merger between the two distilled spirits industry giants. To help tamp down some of that speculation, both Brown-Forman and Pernod Ricard put out very similar statements confirming that such discussions are in fact underway.
Initial reports about the conversations inferred, Pernod Ricard was interested in a deal for Jack Daniel’s Brown-Forman. The statements clarify the relationship in those talks are about a merger of two equals.
Brown-Forman and Pernod Ricard Release Statements about their Conversations
— Brown Forman Confirms Discussions with Pernod Ricard —
“We note the recent market rumors regarding a potential business combination involving Brown‑Forman and Pernod Ricard. Brown‑Forman regularly explores and evaluates strategic opportunities, and can confirm it is engaged in discussions with Pernod Ricard.
If agreed and subject to customary approvals, this partnership would be akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders.
Synergies from the contemplated combination are expected to be significant, creating a global spirits leader with enhanced scale, a powerful brand portfolio, and a balanced geographic footprint, all anchored by two iconic families. No agreement has been reached as to the terms of any possible transaction, and there can be no assurance that any such agreement will be reached. Brown‑Forman does not intend to comment further unless and until an agreement is reached.”
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— Pernod Ricard confirms discussions with Brown-Forman —
“Following recent speculation in the press, Pernod Ricard confirms that it is in discussions regarding a potential business combination with Brown-Forman. If agreed and subject to customary approvals, this partnership would be akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders of both companies.
“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 highest growth potential markets.
“There can be no assurance that any agreement will be reached. Pernod Ricard does not intend to further communicate until an agreement is reached or discussions are terminated.”
We’ll continue to update this story as news breaks.
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