Pernod makes £7.4bn offer for Allied

Joe Bates

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Pernod Ricard has launched an agreed offer for British drinks group Allied Domecq, the world's second largest liquor company

Under the terms of the deal, which values Allied at £7.4bn ($14bn) or 670 pence ($12.66) per share, Pernod Ricard will acquire most of Allied's drinks portfolio, including most notably Ballantine's, Beefeater, Kahlúa, Malibu, Stolichnaya, Tia Maria, New Zealand wine brand Montana, Spanish wine Campo Viejo, as well as Champagne brands Mumm and Perrier Jouët. Pernod will also acquire a number of second-tier, national brands such as South Korea's favourite whisky Imperial and Mexican tequila Presidente.

Pernod hopes to close the deal in the next three to four months and has agreed to sell a number a key marques to Fortune Brands for approximately £2.8bn ($5.3bn) once the sale is completed. These names include Courvoisier, Maker's Mark bourbon, Canadian Club whisky, super-premium Californian wine brand Clos du Bois as well as Pernod's own Larios gin.

Commenting on the offer, Pernod Ricard chairman and ceo Patrick Ricard said: "I would like to say how excited we are by this transaction, which is a new major strategic step in Pernod Ricard's development. I believe that Allied Domecq's magnificent portfolio of brands has a great future within our group. We at Pernod Ricard look forward to working with the employees of Allied Domecq to realise the strong potential that exists to grow our enlarged business."