Shares of Brown-Forman (NYSE:BF) declined 5.88% in premarket trading on Wednesday, after French spirits behemoth Pernod Ricard S.A. (OTC:PRNDY) and the Jack Daniel’s whiskey maker mutually called off the merger talks on Tuesday.
Pernod Ricard said it remains confident in its strategy and team, and is focused on delivering long-term value for stakeholders, while Brown-Forman said it aims to expand globally, strengthening its brands, and improving operational efficiency.
According to the Wall Street Journal, there were differences over the deal’s structure and financial aspects, and both companies failed to reach a consensus on the proposed merger terms. Also, both Pernod and Brown-Forman have significant family ownership, and any deal with Brown-Forman would need the Brown family’s approval, who hold a majority of the company’s voting stock.
Pernod Ricard S.A. and Brown-Forman did not respond to Benzinga‘s request for comments.
Takeover Interest Builds In Brown-Forman
This development comes in the backdrop of a reported $15 billion bid from spirit-maker Sazerac for Brown-Forman, earlier this month, which was a conventional buyout offer of $32 per share.
This was in contrast to Pernod's potential share swap deal, which would have allowed the Brown family to maintain some control over the bourbon business they have managed since 1870. Pernod Ricard's Chief Financial Officer, Helene de Tissot, had earlier stated that discussions with Brown-Forman were “ongoing”.
Brown-Forman previously stated that it plans to prioritize global expansion, brand building, and efficiency as it faces U.S. sales pressure and a Canada slump amid President Donald Trump‘s tariffs, as per WSJ. Meanwhile, the maker of Absolut vodka and Jameson Irish Whiskey, Pernod Ricard, expects a 3% to 4% decline in net sales for the year.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Login to comment