The consortium led by Constellation Brands has pulled out of the bidding race for Allied Domecq, clearing the way for Pernod Ricard’s £7.5m bid to go through.

Constellation Brands said that the consortium, which also included Brown Forman Corporation, Lion Capital and the Blackstone Group, had “determined not to pursue an offer for Allied Domecq”.

Richard Sands, Constellation’s chairman and chief executive officer said: “Constellation approached this opportunity in a disciplined strategic and financial manner and does not believe that the economies justify an offer.”

"Simply put, careful consideration and evaluation of the details following due diligence did not identify sufficient value for submitting an offer.”

Last month the consortium was given until June 29 to confirm whether or not it would make a firm offer for Allied.

Pernod’s bid for Allied has already been accepted, after Allied’s board of directors urged its shareholders to back the bid. The bid is expected to go through on July 26.