Diageo to purchase Bushmills as Pernod closes in on Allied

Joe Bates

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Pernod Ricard offloads the Irish whiskey brand as it prepares its portfolio for success in its bid to purchase Allied Domecq

Diageo, the world's biggest liquor supplier, has agreed to buy Bushmills Irish whiskey from Pernod Ricard for €295m ($361m) as part of the French company's bid to acquire Allied Domecq. Diageo also has an option to acquire Allied Domecq's New Zealand wine brand Montana for €469m ($574m) if Pernod's purchase of Allied goes ahead. As part of the deal, Diageo has agreed to end any talks with third parties to acquire Allied Domecq's assets.

The Allied Domecq sale, although agreed by the UK company's shareholders, is still subject to the approval of the relevant regulatory authorities. The Bushmills sale and the Montana acquisition, if exercised, are scheduled for completion by the end of the year or early 2006.

Keep an eye on RavenFox.com, plus the forthcoming issue of DFNI, for further details.