Pernod Ricard: banking on Treasury, and a Coca-Cola chaser for Pernod wine and spirits?

This week The Australian has made multiple reports about French drinks company Pernod Ricard.

Bridget Carter reported on the 1st of July that Pernod Ricard, the world’s second-largest wine and spirits seller, “is hoping to catch the eye of Australian-listed Treasury Wine Estates (TWE)”, believing TWE is the only party in the local market able to meet its asking price.

Carter also wrote it’s understood Pernod Ricard is utilising the service of Morgan Stanley to consider a sale of its wine assets, which include its Jacobs Creek brand as well as others from America and New Zealand. “So far estimates are that its wine business could sell for between $700 million and $800m”, Carter wrote.

A sales process “was due to start about now, but it is thought it has been delayed until September”, Carter wrote, adding that it’s uncertain if a sales process will eventuate at all, and there is internal debate in Pernod Ricard about whether or not to sell the business as a whole, or only parts.

The Australian also printed a separate report on the 3rd of July  about Coca-Cola Amatil (CCA) potentially throwing its hat in the ring to buy Pernod Ricard’s wine operations. Reports are that CCA is positioning itself to compete alongside Kohlberg Kravis Roberts for Pernod Ricard assets, that are expected to be on the market in September, along with The Carlyle Group, which owns Accolade Wines. Source: The Australian