The talks between Pernod Ricard and Brown-Forman over a possible transaction have ended without agreement.
In a brief statement today (28 April), the French group said the two spirits giants had been unable to “reach mutually acceptable terms”.
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Last month, the distillers confirmed they were in discussions over a potential deal to form a “partnership akin to a merger of equals”.
At the time, Pernod said the “contemplated combination” with Brown-Forman “would create a global spirits leader with enhanced scale, a powerful brand portfolio and a balanced geographic footprint, all anchored by two iconic families”.
In today’s statement, Pernod, home to brands including Absolut vodka and Jameson whiskey, said the companies’ discussions “have ended and did not result in an agreement as the companies were unable to reach mutually acceptable terms”.
It added: “Pernod Ricard remains fully focused and confident in its strategy and operating model, supported by strong and committed teams across the group to deliver sustainable long-term value for all stakeholders.”
Brown-Forman issued a similar statement, noting the companies were “unable to reach mutually agreeable terms”.
It added: “We intend to create long-term value for all stakeholders by focusing on our strategic and operational priorities. This includes unlocking future growth by expanding our geographic footprint, continuing to build brands that resonate with consumers and enhancing operational efficiency.”
The publicly listed group’s share price had jumped in the wake of its talks with Pernod – and were further fuelled by reports fellow US distiller Sazerac was also interested in a deal. Shares in Brown-Forman were down more than 4% in after-hours trading in New York.
Earlier this month, The Wall Street Journal and Reuters reported the privately-owned Sazerac had approached Brown-Forman over a possible deal. The outlets said Sazerac made a bid for Brown-Forman of $32 a share, which would have valued the Jack Daniel’s maker at around $15bn. Sazerac has not commented publicly on its reported interest in Brown-Forman.
Last week, Bloomberg and Reuters reported Brown-Forman favoured a deal with Pernod over a transaction with Sazerac, home to brands including Buffalo Trace whiskey and Svedka vodka. Brown-Forman declined to comment.
