According to a new report by Berenberg analysts, a consortium-led acquisition of Pernod Ricard by LVMH and Diageo is "a likely scenario".
The report stated that LVMH "could take the lead in a potential bid", with such a transaction potentially bringing about the end of a joint venture that LVMH and Diageo have had since 1987.
Such a deal could bring Irish drinks brands such as Guinness and Jameson under a single corporate umbrella.
Resources For Takeovers
LVMH is estimated by Berenberg to have almost $40 billion in resources for takeovers, meaning that a joint purchase of Pernod would "make sense" from both a financial and regulatory point of view, according to Berenberg analyst Zuzanna Pusz.
The Irish Independent quotes Pusz as saying, "An efficient split of brands between LVMH and Diageo should overcome any regulatory hurdles that such a deal would face."
© 2019 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
