US wine giant enters hunt for Allied Domecq
The world’s largest winemaker is in talks that could see it gatecrash the £7.4bn (€10.8bn) takeover of drinks group Allied Domecq, it was reported today.
America’s Constellation Brands – whose portfolio includes Hardys wine and Corona beer – is said to have called in bankers to advise it on a possible counter-bid to Pernod Ricard’s agreement.
It is understood that Constellation is seeking partners for a joint bid since it would not be big enough to make a move alone, according to The Observer.
Likely candidates for a tie-up could be rum-maker Bacardi, and Brown-Forman, whose brands include Southern Comfort and Jack Daniels.
The report comes just days after Allied Domecq accepted to be taken over by French rival Pernod, in a deal set to create the world’s second-largest wine and spirits firm.
Allied is known for key brands such as Beefeater gin, Tia Maria and Courvoisier cognac, as well as Ballantine’s and Teacher’s whisky.
Constellation is said to be interested in the group’s wines, which include Mumm, Montana and Perrier Jouet.
It is thought Bacardi would be attracted by brands such as Ballantine’s, while it may also be interested in taking over Allied’s listing on the London stock market.
Constellation employs nearly 7,500 staff and has more than 200 drinks brands.
