Pernod Ricard is in a battle with Compania Cervecerias Unidas (CCU) to take control of Chilean pisco producer Cooperativa Agricola Pisquera Elqui, or Capel, according to Chilean press reports.

The two companies are squaring up over Capel after CCU took over Cooperativa Agricola Control Pisquero de Elqui y Limari Ltda., or Pisco Control, in March. Local winery Vina Santa Rita has also expressed an interest, the reports said.

Chile's anti-trust office said last week that CCU's bid for Capel should be rejected as it would give the Chilean drinks company monopoly control of the country's pisco market.

Speaking to Dow Jones, Laurent Pillet, general manager of Pernod Ricard Chile, said: "If the authorities allow someone to have 99% or 100% control of the market, (that sets up) an evident market access barrier. An economic group that has other interests in beer and wine will never let anyone else in."