Talks between Constellation Brands and Australian Vintage over a possible merger have closed, with the two firms deciding not to progress further.
Constellation and Australian Vintage, who opened talks back in November, confirmed late yesterday (7 April) that they “were not going to be successful in accomplishing” a mutually beneficial combination.
The companies had been looking at ways to merge their Australian and UK businesses, but noted yesterday that it was “in the best interest of Constellation and AVL” to discontinue the discussions.
“There were a number of goals both parties were attempting to accomplish through the combination,” said Constellation’s president and CEO, Rob Sands. “Over time, it became evident that despite both parties’ best efforts we were not going to be successful in accomplishing all these goals.”
Constellation will continue to operate its Australian and UK businesses, while AVP will also “continue to manage the business through the cycle and look at all opportunities as conditions improve”.
In August last year, Constellation began a “realignment” process of its European and Australian wine divisions, as the downturn started to bite.

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