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Pernod deal for Allied completed

Published:  23 July, 2008

Three months after the Allied Domecq's board decided to recommend Pernod Ricard's bid for the company, the UK's second-largest drinks company now belongs to its French rival.

Supported by Fortune Brands, which stumped up 2.8 billion of the 7.4 billion which Pernod bid, and Diageo, which agreed not to back any other bidder in return for Bushmills whiskey and an option to buy Montana, Pernod's purchase of Allied was passed by the High Court of Justice of England and Wales on Monday.

Pernod is now the second-largest drinks company in the world, with sales of 77 million cases of spirits and 18 million cases of wine, net sales of €5.6 billion and earnings before tax of €1.5 billion.

Patrick Ricard, chairman and chief executive officer of Pernod Ricard, commented: This transaction represents a remarkable opportunity that enables us to become the world's second number two wines and spirits operator, and accordingly close in on the leader [Diageo]. We shall now be able to swiftly carry out the task of integrating the teams and brand in accordance with our decentralised organisation mode.'

The new Pernod Ricard portfolio comprises 14 key brands: Ricard, Ballantine's, Chivas Regal, Kahlua, Malibu, Beefeater, Havana Club, Stolichnaya, Jameson, Martell, The Glenlivet, Jacob's Creek, Mumm and Perrier-Jout.