AUSTRALIA: Cranswick and Evans & Tate in talks
Australian wine producers, Evans & Tate and Cranswick Premium Wines, have confirmed that they are in talks which could lead to a commercial alliance or even a full-scale merger. Shares in the two companies surged after the news was confirmed.
Cranswick said that while the talks were still at an early stage, it would know within the next month if collaboration between the two companies was viable. "Within four weeks we'll be in a position to decide whether both parties are interested enough to move to serious merger discussions or whether we'll just remain friends," said managing director, Graham Cranswick-Smith.
Analysts were generally enthusiastic about a potential merger between the two which would produce a single group with a market capitalisation of more than A$110m and annual branded-wine production of 2.5m cases.
The two companies are a potentially good fit. Evans & Tate, which has limited activities in the export market, would gain access to Cranswick's distribution network in Europe while Cranswick would gain access to a highly regarded wine portfolio.
Companies: Evans & Tate Wine Group
Australian wine company Evans & Tate has suffered acutely as grape oversupply and weak exports have combined to hit the Australian wine industry hard. David Robertson reports on the company's woes and...
Evans & Tate has put its Oakridge winery up for sale as part of its plan to focus on its premium wine business....
Evans & Tate risks having to immediately repay A$20m (US$14.7m) to convertible noteholders....
Ailing Australian wine producer Evans & Tate has axed 20 jobs as part of a round of cost cuts it hopes will revive the business....
Evans & Tate has completed the sale of its bulk wine inventory but said it would work with consultants 333 Performance Management for a further three months in a bid to turn around the business....
Evans & Tate has appointed a new chief executive officer....
Evans & Tate may be investigated by the Australian authorities, according to local press reports....
The troubles of Australian winemaker Evans & Tate are increasing, with news today (16 August) that the company now expects to make write-downs of not less than A$16.5m for the 2004/05 financial year....
- Have spirits companies forgotten the mainstream?
- Does alcohol accelerate the onset of dementia?
- Pernod's mood darkens over India - Analysis
- Why Scotch must drop the 'malts good, blends bad'
- Ashwagandha - The next functional drinks trend?
- Moet Hennessy unaffected by LVMH Dior buy
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Distell acquires majority stake in Cruz Vodka
- Portman Group heads to Tesco for new chief exec
- William Grant names Europe & NA Travel Retail head
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Global vodka insights - market forecasts, product innovation and consumer trends