No Deal: Pernod Ricard and Jack Daniel’s Owner Brown-Forman End Merger Talks

(AP Photo/Toby Talbot, File)

French spirits giant Pernod Ricard and Kentucky’s Brown-Forman announced on Tuesday that they have ended discussions on combining their businesses, halting what would have been one of the largest mergers in the global spirits industry.

“We intend to create long-term value for all stakeholders by focusing on our strategic and operational priorities,” Brown-Forman said in a statement. “This includes unlocking future growth by expanding our geographic footprint, continuing to build brands that resonate with consumers, and enhancing operational efficiency.”

Brown-Forman is best known for its brand Jack Daniel’s but also owns Woodford Reserve and Old Forester, as well as other brands beyond whiskey, including Herradura Tequila. Pernod Ricard’s portfolio includes brands such as Absolut, Jameson, The Glenlivet, Chivas Regal and Martell.

Pernod Ricard said that talks, initiated in March, did not result in an agreement because the companies were unable to reach mutually acceptable terms. No financial structure, valuation or timeline had been finalized.

The companies had previously confirmed they were exploring a “potential business combination” described in industry reporting as a possible merger of equals that could have reshaped the competitive landscape for global spirits.

Separately, it was reported that privately held U.S. spirits group Sazerac Company — owner of Buffalo Trace — has explored interest in Brown-Forman and reportedly made a $15 billion acquisition offer.

Reporting indicated that Brown-Forman preferred the Pernod Ricard route, but we’ll have to wait and see if Pernod’s exit from discussions will swing a deal in Sazerac’s favor.

“Pernod Ricard remains fully focused and confident in its strategy and operating model, supported by strong and committed teams across the Group to deliver sustainable long-term value for all stakeholders,” Pernod Ricard said in a news release.

In early April, French channel BFMTV reported that government officials were “annoyed by” Pernod Ricard’s delay in informing the Elysée Palace of talks between the French firm and Brown-Forman and were closely monitoring the situation.