Pernod wins shareholder and US approval for Allied purchase

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John Rimmer

1-Jul-2005

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Pernod Ricard has moved a further step nearer the acquisition of Allied Domecq as shareholders approve an increase in share capital and US anti-trust authorities give clearance for the bid

The acquisition of Allied Domecq by Pernod Ricard and Fortune Brands looks increasingly certain after Pernod yesterday won approval from its shareholders to increase its share capital to enable the deal to go ahead. While the meeting was held in Paris, the bid received a further boost when anti-trust authorities in the US decided to approve the acquisition, subject to the sharing out of Allied's brands as set out in Pernod and Fortune's Framework Agreement. The US Federal Trade Commission continues to discuss the future of Allied's Canadian Club and Maker's Mark brands, which Pernod will hold until clearance is given to their acquisition by Fortune.

Only two obstacles now remain before the sale of Allied is completed; clearance from anti-trust authorities in Canada and final approval from Allied's shareholders, who are to meet on Monday July 4.

Pernod Ricard CEO Patrick Ricard said: "We welcome this clearance. We now look forward to the outcome of the Allied Domecq shareholder meetings and believe that we remain firmly on track for meeting the proposed timetable with completion occurring by the end of July."

Once the deal is complete, Pernod will acquire several of Allied's leading brands, including Ballantine's Scotch whisky, Beefeater gin and Malibu and Kahlúa liqueurs. Fortune, meanwhile, stands to gain Sauza tequila plus Scotch whiskies Teacher's and Laphroaig. Already owner of Jim Beam bourbon, Fortune's proposed takeover of Maker's Mark has been put on hold until US authorities give their permission.

More comment and analysis in DFNI July 1, out today.

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