![\"Chivas](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2024\/11\/Chivas-and-Ferrari.png\")
Spirits companies Pernod Ricard and Brown?Forman Corporation are in talks about a potential merger amid a slowdown in the alcohol market.<\/p>\n
While a deal is not imminent, a joint statement confirmed that talks have been serious. It would unite the world\u2019s second-largest spirits maker with the ?largest producer of American whiskey.<\/p>\n
Paris-based Pernod Ricard, owner of Chivas Brothers Scotch whisky and the Glenlivet, is the bigger and broader of the two, but Brown-Forman has one of the world\u2019s most recognisable brands in Jack Daniel\u2019s.<\/p>\n
As news of the potential deal emerged shares in Brown-Forman, which has a market capitalisation of about $11 billion, rose nearly 9%, while those of Pernod, with a market value of about \u20ac16bn fell nearly 6%.<\/p>\n
Both companies have announced\u00a0restructuring plans, including\u00a0job cuts\u00a0at Brown-Forman as consumers tighten their belts and switch to non-alcoholic alternatives.<\/p>\n
The statement said: \u201cIf agreed and subject to customary approvals, this partnership would be akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders of both companies.\u201d<\/p>\n
Pernod Ricard added that \u201cthe contemplated combination would create a global spirits leader with enhanced scale, a powerful brand portfolio, and a balanced geographic footprint, all anchored by two iconic families.<\/p>\n
\u201cOperational synergies would be significant, leveraging Brown-Forman\u2019s iconic brands, including Jack Daniel\u2019s, and Pernod Ricard\u2019s global distribution strength and exposure to highest growth potential markets.\u2019<\/p>\n
Brown-Forman said: \u201cWe note the recent market rumours regarding a potential business combination involving Brown?Forman and Pernod Ricard. Brown?Forman regularly explores and evaluates strategic opportunities, and can confirm it is engaged in discussions with Pernod Ricard.\u201d<\/p>\n
Pernod Ricard\u2019s consolidated sales amounted to \u20ac10.96 billion in the last financial year.<\/p>\n
Brown?Forman\u2019s portfolio includes The Glendronach, Glenglassaugh, Benriach, Diplom\u00e1tico Rum, Gin Mare, Fords Gin, Chambord, and Slane.<\/p>\n
Net sales for the nine months ended 31 January increased 2% to $1.1bn (+1% on an organic basis) compared to the same prior-year period. <\/p>\n
\t <\/div>\n