TWE has been forced to move again to quash rumours it wants to sell its US unit

TWE has been forced to move again to quash rumours it wants to sell its US unit

Treasury Wine Estates (TWE) has moved to deny speculation that it is in talks to sell its US business to Constellation Brands

The Australian Financial Review reported earlier today (15 May) that the two firms have had "informal talks" over a possible deal. The speculation follows similar rumours earlier this month that Pernod Ricard was eyeing TWE's US operations.

In a statement to the Australian Stock Exchange today, TWE said: "Treasury Wine Estates confirms that it has not been approached by, and is not in discussions with, Constellation Brands regarding the company’s US business."

It added: "The company has no intention of selling its US operations and sees that market as a key plank of its future growth platform."

Constellation Brands said in a statement that it "does not comment on rumours or speculation". It added: "Constellation is focused on completing the expansion of its Mexican brewery, driving organic growth and paying down debt." 

TWE has struggled in the US lately, with a stock clear-out last year contributing to a 53% plunge in full-year net profits in August.

The writedown led to the departure of CEO David Dearie a month later.

Expert analysis

Global Wine Market: News and Events March 2014

Global Wine Market: News and Events March 2014

Synopsis The report provides a review of the latest news and key events in the global wine market during March 2014. Summary Using this report, marketers will effectively gain an insight into the lat...read more