Brown-Forman Shares Slide 6% after Pernod Talks Collapse, $32 Sazerac Bid
Brown-Forman and Pernod Ricard ended merger negotiations after failing to agree on structure and financial terms, sending Brown-Forman shares down over 4% in after-hours and nearly 6% pre-market. A prior Sazerac $32 per share offer valued Brown-Forman at $15bn, intensifying deal competition.
1. Merger Talks Collapse
Brown-Forman and Pernod Ricard formally ended their proposed merger-of-equals discussions after failing to reach mutually acceptable terms on deal structure and governance, with Brown family’s majority voting control cited as a key sticking point.
2. Market Reaction
Shares of Brown-Forman fell over 4% in after-hours trading and nearly 6% in pre-market, reversing gains driven by earlier merger speculation and reflecting investor disappointment.
3. Sazerac Offer
Private distiller Sazerac had made a $32 per share offer valuing Brown-Forman at approximately $15 billion, presenting an alternative bid that added pressure to the Pernod Ricard negotiations.
4. Strategic Outlook
Brown-Forman intends to refocus on expanding its geographic footprint, strengthening flagship brands like Jack Daniel’s, and enhancing operational efficiency to drive sustainable long-term value.