France: Pernod Ricard and Brown-Forman confirm merger talks

Pernod Ricard, the French spirits producer, and US-based Brown-Forman have confirmed they are in preliminary discussions regarding a potential “merger of equals”.

The talks are currently at an early stage. Pernod Ricard, the world’s second-largest spirits maker, said it “confirms that it is in discussions regarding a potential business combination with Brown-Forman”. However, the group cautioned that “there can be no assurance that any agreement will be reached”.

Brown-Forman, the owner of brands including Jack Daniel’s and Woodford Reserve, released a parallel statement confirming the exploratory talks. The potential deal would combine Pernod Ricard’s global distribution network and brands such as Absolut and Chivas Regal with Brown-Forman’s position as the world’s largest producer of American whiskey.

Neither company has commented on the potential valuation of a combined entity – estimated by analysts at around $30 billion – and Brown-Forman stated it “does not intend to comment further” until a definitive agreement is reached.

Source: Pernod Ricard / Brown-Forman / The Spirits Business / The Drinks Business