Brussels, 28/06/2005 (Agence Europe) - The Commission has given its conditional green light to the acquisition of the United Kingdom-based company Allied Domecq by the French company Pernod Ricard SA, which will be the world's second largest spirits company, behind the British company Diageo. Pernod Ricard's main brands include the whiskies "Chivas Regal", "Clan Campbell" and "Glenlivet", "Martell" cognac and "Ricard" aniseed-based spirit. Allied Domecq produces and distributes such brands as "Ballantine" whisky, "Beefeater" gin, the cognac "Courvoisier", "Stolichnaya" vodka and liqueurs such as "Kahlua" and "Malibu". "Although this operation will reinforce Pernod Ricard's general position in the wines and spirits sector, the proposed measures will reduce direct overlaps and will maintain effective competition in all markets concerned", said Commissioner for Competition, Neelie Kroes.
The Commission authorised the takeover bid launched by Pernod Ricard on 21 April, on condition that the latter shed several brands. The newly-created entity will have a particularly strong position on a number of national markets, particularly in the categories of Scottish and Irish whiskies, and for sales of cognac and champagne in Portugal, a press release explained. In order to address these concerns, Pernod Ricard has undertaken to sell its whisky brands "Glen Grant", "Old Smuggler" and "Braemer", its cognac brands "1920" and "CR&F" and to end its distribution agreements on the Irish whiskey "Tullamore Dew" and the champagnes "Moët and Chandon" and "Dom Perignon" in Portugal. Allied Domecq shareholders will take position on the Pernod takeover bid at their general annual meeting on 4 July. The American competition authorities (Federal Trust Committee- FTC) have still to examine the operation.
As part of their preparations for the merger, both parties had already sold several brands to the American company Fortune Brands. Pernod Ricard parted company with "Larios" in June and Allied Domecq with "Canadian Club", "Courvoisier", "Marker's Mark", "Sauza", "Laphroaig", local brands (DYC, Centenatrio, Castellana and Finador in Spain, Harvey's, Cockburn, Teacher's in the United Kingdom, Kuemmerling and Jacobi in Germany), and various Californian wines and distribution networks.