Pernod Ricard set for Allied Domecq swoop
A Pernod Ricard and Allied Domecq marriage would combine the world’s third and second largest spirits groups.
Earlier today Allied Domecq revealed that Pernod Ricard and Fortune Brands were considering an offer. News of the interest sent Allied shares up by 16.8 per cent, while Pernod shares were down 2.5 per cent. At current share prices, Allied Domecq has a value of about 10.9bn euros and Pernod has a value of 7.7bn euros. Allieds brands include Ballantine's whisky and Beefeater gin, while Pernod is famous for the drink of the same name, as well as Chivas Regal scotch, Jameson Irish whiskey and Jacob's Creek Australian wine.
Pernod has been linked with a Allied takeover since the beginning of 2005, although no approach was made at the time. The combination would provide Allied and Pernod with a stronger footing to tackle UK based market leader Diageo, which has a value of £22.8bn, although many analysts had doubted their ability to come up with the money to buy its larger rival.
Neither Allied nor Pernod were giving much away this afternoon. Allied were not returning phone calls from FoodIngredientsFirst, while a Pernod spokesman would not go further than reiterating a brief statement.
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