Pernod Ricard has been given the green light by the European Commission for its acquisition of Allied Domecq PLC.  However, the French drinks company has been told the deal is subject to certain undertakings.

Pernod Ricard's acquisition will only go through if it implements its Framework Agreement with Fortune Brands, Inc and sell the Glen Grant, Old Smuggler and Braemar Scotch whisky brands as well as the 1920 and CR&F Portuguese brandies.

On 21st April, Pernod Ricard made a recommended offer to acquire Allied Domecq PLC.

The group's portfolio will be enhanced with the addition of brands such as Ballantines whisky, Beefeater Gin, Malibu and Kalhua liqueurs, and Mumm and Perrier Jouet Champagnes.

"This clearance is an important step in this transaction» said Patrick Ricard, chairman and CEO of group Pernod Ricard. "The transaction offers us exciting opportunities and will position Pernod Ricard firmly as the number two in the worldwide spirits business and number four in wines."
 
The acquisition remains subject to the approval of anti-trust authorities in the USA and Canada as well as subject to the approval of both Pernod Ricard and Allied Domecq shareholders.