Pernod Ricard given approval to buy Allied

Lorna Strickland

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The French company, in partnership with Fortune Brands, now looks certain to acquire its UK rival

The European Commission has granted clearance to Pernod Ricard and its bidding partner Fortune Brands to buy rival liquor supplier Allied Domecq. The clearance was granted on the condition that Pernod Ricard sells three of its whisky brands Glen Grant, Old Smuggler and Braemar, as well as the 1920 and CR&F Portuguese brandies.

The acquisition remains subject to the approval of US and Canadian anti-trust authorities and is also subject to rubber-stamping by Pernod Ricard and Allied Domecq shareholders.

Pernod Ricard chairman and CEO Patrick Ricard said: "This clearance is an important step in this transaction. It offers us exciting opportunities and will position Pernod Ricard firmly as the number two in the worldwide spirits business and number four in wines."

For comment and analysis see DFNI July 1, out this week.