Brown-Forman talks “ongoing”, Pernod Ricard says

Talks betwixt Pernod Ricard and Brown-Forman implicit a imaginable merger are continuing, the French spirits giant’s CFO has said.

Three weeks ago, the distillers announced they were successful talks implicit a woody to signifier a “partnership akin to a merger of equals”.

Since then, reports person emerged Sazerac has approached Brown-Forman astir a imaginable transaction betwixt the 2 US spirits groups.

Speaking to analysts contiguous (16 April) aft Pernod published its third-quarter income figures, CFO Hélène de Tissot made a little connection connected the presumption of the company’s talks with Brown-Forman.

“Before I statesman treatment connected our Q3 income results, I thought I would accidental a connection regarding our property merchandise of 27 March successful which we corroborate discussions are taking spot regarding the imaginable concern operation with Brown-Forman. As stated, we did not mean to pass further until either an statement is reached oregon discussions are terminated. Discussions are ongoing, truthful astatine this stage, I person nary further remark to make,” de Tissot said.

In Pernod’s connection past month, the Jameson whiskey shaper said the “contemplated operation would make a planetary spirits person with enhanced scale, a almighty marque portfolio and a balanced geographic footprint, each anchored by 2 iconic families”.

A woody betwixt Pernod and Brown-Forman would bring unneurotic 2 of the world’s largest spirits groups. As good arsenic Jack Daniel’s, the Brown-Forman merchandise scope includes Woodford Reserve whiskey and Diplomático rum. Pernod, the world’s second-largest distiller down Diageo, owns brands including Beefeater gin, Absolut vodka and Chivas Regal whisky.

US distiller Sazerac is location to brands including Buffalo Trace whiskey, BuzzBalls RTDs and Svedka vodka.

Reports past week by Reuters and The Wall Street Journal outlined Sazerac’s involvement successful a woody with Brown-Forman. Yesterday, the concern quality outlets said Sazerac had made a bid for Brown-Forman of $32 a share, which values the El Jimador Tequila shaper astatine astir $15bn.

At the adjacent of trading yesterday, Brown-Forman’s shares stood astatine $29.60. Before reports of its talks with Pernod archetypal emerged, the company’s shares closed Wednesday 25 March astatine $23.49.

Brown-Forman and Sazerac representatives could not beryllium reached for remark extracurricular of mean US bureau hours. Sazerac declined to remark past week erstwhile the reports of involvement successful a woody with Brown-Forman archetypal emerged.

Analysts astatine Barclays person said a woody betwixt Brown-Forman and Pernod would spot the combined entity leapfrog Sazerac and marque the caller concern “a wide number-two player” successful the US down Diageo.