Pernod Ricard is to acquire Allied Domecq.

Following weeks of speculation, the French company confirmed this morning that it has reached agreement on the terms of a recommended offer to acquire the entire issued and to be issued share capital of Allied.

The transaction values Allied at around GBP7.4bn (US$14.2bn).

Pernod's co-bidder, Fortune Brands, will buy Allied's Sauza, Maker's Mark, Courvoisier and Canadian Club spirit's brands, super-premium California wines, including the Clos du Bois brand, Allied's distribution assets in the UK, Germany and Spain and for US wine, and Pernod's Larios brand for around GBP2.8bn in cash.

Further details will appear on this website shortly.