New Zealand's Commerce Commission has cleared Pernod Ricard S.A. to acquire the entire share capital of Allied Domecq plc.

However, the clearance is subject to the divestment of the Lindauer, Aquila, Italiano, Chardon and Chasseur brands currently owned by Allied.

Pernod has given Diageo the right to acquire much of its New Zealand wine business once the French company completes its Allied acquisition. Diageo is currently reviewing its options, but if it decides to exercise that right, Pernod will be left with only the Corbans, Stoneleigh and Church Road brands in New Zealand.

Commission chair Paula Rebstock said that the Commission was satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in the New Zealand markets for wine and gin.

The Commission also cleared Fortune Brands, to acquire certain Allied Domecq plc brands and assets from Pernod Ricard S.A. This acquisition is conditional on Pernod Ricard acquiring Allied Domecq. 

Commission Chair Paula Rebstock said that the Commission was satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in the New Zealand markets for the importation or production of bourbon for distribution.