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ACCC decision paves the way for Accolade-Pernod Ricard merger

ACCC decision paves the way for Accolade-Pernod Ricard merger

The merging of two of Australia’s largest wine producers has taken a step closer after a decision by the Australian Competition and Consumer Commission (ACCC).

In a statement issued today, Australian Wine Holdco Limited (AWL), which is a consortium of international institutional investors, has welcomed the ACCC’s decision to grant merger clearance for the combination of Accolade Wines with Pernod Ricard’s Australian, New Zealand and Spanish wine businesses.

“The combined entity will be a more efficient global wine business with a diversified portfolio of highly complementary old and new world wine labels,” the statement said. “The combined business will have operations in every continent and be in a better position to meet the challenges facing the wine industry, providing a more certain and financially sustainable future for the business.”

AWL spokesman Joshua Hartz described the ACCC decision as a milestone in the move to combine the two companies.

“We welcome the ACCC’s decision. We have worked closely with all stakeholders to progress this combination and today’s milestone takes us a step closer. Importantly, management are focused on preparations for a smooth integration of the businesses once the deal completes.”

“Both Accolade Wines and Pernod Ricard have a long, proud history as world-class wine producers. Combining Accolade Wines with the Pernod Ricard assets will create a more certain and financially sustainable future for the business, allowing us to better serve our customers, in more segments and more geographies. Backed by AWL, the combined business will be better able to adapt to changing consumer tastes and meet the structural challenges facing the global wine industry,” Hartz said.

The transaction remains subject to other customary closing conditions, which need to complete before the companies can be combined.

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