The European Commission is to meet today to rule on whether or not to approve Pernod Ricard's GBP7.6bn acquisition of Allied Domecq.

The expectation is that the deal will be approved with Pernod having to dispose of some brands to meet the requirements of regulators in some markets, such as in the French whisky sector. Pernod has already proposed some possible solutions in this regard to pre-empt regulatory problems.

The Commission extended an initial deadline for announcing its decision from June 10 to June 24. A decision by the US regulator, the Federal Trade Commission, is expected in July.