Report: French Government ‘Annoyed’ by, Closely Watching Pernod Ricard, Brown-Forman Merger Talks

(Sipa via AP Images)

French government officials are closely monitoring merger discussions between Pernod Ricard and Brown-Forman, with concerns focused on jobs, investment and the future headquarters location, according to a report from local channel BFMTV.

The French spirits group said last week it is in talks with Brown-Forman about a potential “merger of equals.” If completed, the deal would create a combined company with an estimated market value of about €30 billion and more than €15 billion in annual revenue.

“At the top of the state, they are still annoyed by the Pernod Ricard group,” BFMTV said in its report.

Officials at both the Elysée Palace and the Ministry of the Economy are paying close attention to the discussions. According to BFMTV, government sources said they were not informed in advance of the talks, which has caused frustration at the highest levels.

“The Elysée Palace was warned at the last moment,” a source familiar with the matter told BFMTV.

It is typical for the French government to be briefed ahead of major industrial transactions involving domestic companies. Sources cited by BFMTV said that was not the case here, adding that officials remain focused on protecting France-based operations.

“We will be very vigilant regarding employment, the location of the headquarters, and investments in France,” a source told the outlet.

The Ministry of the Economy is also “closely monitoring” the situation, with particular attention to the company’s industrial footprint. Pernod Ricard employs about 3,000 people in France, including staff tied to its Martell Cognac operations.

At this stage, discussions between Pernod Ricard and Brown-Forman are described as “well-advanced,” according to a source cited by BFMTV. Management teams are aligned, though neither company’s board has formally approved a deal. Key issues under consideration include governance structure and where the combined company would be based.

While the French government does not classify Pernod Ricard as a strategic or sovereign company, it is viewed as a major industrial player. The wine and spirits sector remains a key part of France’s export economy, with customs data showing exports in the category rose 5% in 2025.

Pernod Ricard has faced recent pressure in key markets. The company’s sales in China declined last year, linked to tariffs on cognac. It is also involved in a long-running legal dispute in Cuba over the Havana Club brand.