US drinks company Brown-Forman Corporation and its French peer Pernod Ricard today (29 April) both announced the termination of discussions regarding a potential business combination, previously revealed on 26 March.
Both companies had spoken optimistically them of a “merger of equals” but today’s dual announcements appear to mark the unlikelihood of any such alliance.
Pernod Ricard said discussions had ended and did not result in an agreement as the companies were unable to reach mutually acceptable terms.
“Pernod Ricard 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.”
Brow-Forman reiterated the same message, adding: “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.”
Footnote: Attention will now focus around news (as first revealed in a New York Times report on 17 April) that Kentucky-based Sazerac is preparing an all-cash-and-stock offer worth around US$15 billion to acquire Brown-Forman, valuing the company at the same amount.
