Following speculation which broke yesterday, 26 March, both companies released statements to confirm the rumours.
“We note the recent market rumours regarding a potential business combination involving Brown‑Forman and Pernod Ricard,” said a statement from Brown-Forman.
“Brown‑Forman regularly explores and evaluates strategic opportunities, and can confirm it is engaged in discussions with Pernod Ricard.
“If agreed and subject to customary approvals, this partnership would be akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders.
“Synergies from the contemplated combination are expected to be significant, creating a global spirits leader with enhanced scale, a powerful brand portfolio, and a balanced geographic footprint, all anchored by two iconic families.
“No agreement has been reached as to the terms of any possible transaction, and there can be no assurance that any such agreement will be reached. Brown‑Forman does not intend to comment further unless and until an agreement is reached.”
Pernod Ricard also published its own statement the same day, which read: “The contemplated combination would create a global spirits leader with enhanced scale, a powerful brand portfolio, and a balanced geographic footprint, all anchored by two iconic families.
“Operational synergies would be significant, leveraging Brown-Forman’s iconic brands, including Jack Daniel’s, and Pernod Ricard’s global distribution strength and exposure to highest growth potential markets.
“There can be no assurance that any agreement will be reached. Pernod Ricard does not intend to further communicate until an agreement is reached or discussions are terminated.”
The two companies have a combined total of 25 brands which sell more than one million 9-litre cases each year.
