Constellation Drops Allied Bid
Constellation Brands Inc. and three partners said Thursday that they would not pursue an acquisition of Allied Domecq, clearing the way for a purchase by Pernod Ricard.
Constellation, the world’s largest winemaker, determined that an acquisition wouldn’t add value for shareholders, the New York-based company said. Constellation, Brown-Forman Corp., Lion Capital and Blackstone Group had planned to offer about $14.1 billion for the company, sources familiar with the matter said last month.
It is the second time this month that a company has abandoned plans to make a bid for Allied Domecq. On June 6, Diageo, the world’s biggest distiller, said it would drop discussions with third parties to acquire Allied Domecq assets after Pernod Ricard agreed to sell the company its Bushmills whiskey brand.
“We looked at the company very closely, and we just couldn’t make the numbers work,” Constellation spokesman Mike Martin said.
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