Brancott Vineyards parent company, Montana Wines, the largest wine producer in New Zealand has announced the purchase of all the shares of Corbans Wine Limited, the second largest winery, owned by DB Group Limited. The newly merged company will produce an estimated 55% of New Zealand wines.

The purchase allows Montana Wines/ Brancott Vineyards to extend their grape resources, achieve greater production economies and become an even more significant presence in the international market. The enhanced vineyard holdings of 6000 acres will allow Brancott Vineyards to increase their U.S. market supply over the next several years.

"This development is an exciting challenge for our company," says managing director Peter Hubscher. "This gives our newly merged team even greater access to top quality vineyards and other resources. We believe it represents a great step forward for the New Zealand wine industry"

The purchase has received the consent of the Commerce Commission and a preliminary consent from the Overseas Investment Commission. Expected approval of the purchase is pending from the shareholders of the Montana Group, of which Montana Wines Limited/ Brancott Vineyards is a wholly owned subsidiary, and also from the DB Group shareholders.

The Seagram Chateau & Estate Wines Company, a division of Joseph E. Seagram & Sons, Inc., with principal offices in San Mateo and Napa Valley, California and New York City, produces and markets the wines of Sterling Vineyards, Tessera, The Monterey Vineyard and the sparkling wines of Mumm Cuv e Napa. The company is the exclusive U.S. importer of G.H. Mumm and Perrier-Jou t Champagnes, Barton & Guestier wines, Brancott Vineyards from New Zealand and Sandeman Ports and Sherries; and is the largest importer of classified Bordeaux in the United States. The portfolio is completed by Dominus in the Napa Valley, a collection of Burgundy estate-bottled wines, F.E. Trimbach wines from Alsace, San Telmo of Argentina, Castello d'Albola in Chianti, and several other European wines and spirits.