Pernod Ricard sold the Irish whiskey brand Bushmills to Diageo for approximately £200m and gave Diageo the right to buy most of Allied Domecq’s Montana wine brand, excluding Corbans, Stoneleigh and Church Road, if Pernod’s bid for Allied is successful.
Pernod’s bid for Allied has been accepted, despite a consortium led by Constellation Brands preparing a rival bid.
Constellation Brands has until June 29 to confirm whether or not it will make a firm offer for Allied. However, if this fails to materialise, Pernod’s bid will go through on July 26.
Last week, Diageo’s chief executive Paul Walsh revealed that he would be prepared to help finance a bid for Allied in order to acquire certain Allied’s brands.
However, the new deal throws Diageo’s weight firmly behind the Pernod bid, with Diageo agreeing not to talk with third parties about the deal or acquiring or disposing of any shares in Allied Domecq without consent.