European Commission approves Seagram acquisition

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The European Commission today signalled the green light to Pernod-Ricard and Diageo's acquisition of Seagram's Wine & Spirits division.

Pursuant to the agreement signed in December 2000, Pernod-Ricard and Diageo with their respective travel-retail divisions (World Brands Duty Free and UDV Global Duty Free) will acquire from Vivendi Universal some of the world's leading drinks brands spanning European, Latin American and Asian markets as well as corresponding production facilities. Pernod-Ricard will add whisky brands Chivas Regal, Glen Grant, Royal Salute and Glenlivet to its portfolio and Martell Cognac, Seagram's gin Extra Dry and rum brand Montilla in Brazil. Diageo will add a key brand, Crown Royal Canadian whisky, in the international whisky and US duty-free categories. Captain Morgan rum is still the subject of a legal battle between Diageo and Allied Domecq, who insist their agreement with Captain Morgan's Puerto Rican producer Destilleria Serrales gives them first right to the brand.

Pernod-Ricard chairman and ceo Patrick Ricard commented, "This announcement is the first step in the operation. It offers us exciting perspectives and will position Pernod-Ricard as third-ranking player in this sector."

The acquisition is still subject to the approval of anti-trust authorities in the US and Canada as well as a number of other countries.