Following recent media speculation, Pernod Ricard and Brown-Forman have confirmed that they are in discussions regarding a potential business merger.

Reuters noted: “Both companies have recently announced restructuring plans, including job cuts at Brown-Forman. Cash-strapped or health-conscious drinkers in key markets like the US ​already were cutting back on drinking before President Donald Trump’s administration raised import tariffs, while emerging threats like fast-growing cannabis drinks also threaten sales.

“Tariffs have also forced spirits companies to absorb price increases or pass them on to drinkers, hurting sales.”

Pernod Ricard said: “If agreed and subject to customary approvals, this partnership would be akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders of both companies,” Pernod Ricard said.

“The contemplated combination would create a global spirits leader with enhanced scale, a powerful brand portfolio, and a balanced geographic footprint, all anchored by two iconic families. Operational synergies would be significant, leveraging Brown-Forman’s iconic brands, including Jack Daniel’s, and Pernod Ricard’s global distribution strength and exposure to highest growth potential markets.

“There can be no assurance that any agreement will be reached. Pernod Ricard does not intend to further communicate until an agreement is reached or discussions are terminated.”

Brown-Forman said: “We note the recent market rumours regarding a potential business combination involving Brown-Forman and Pernod Ricard. Brown-Forman regularly explores and evaluates strategic opportunities, and can confirm it is engaged in discussions with Pernod Ricard.

“If agreed and subject to customary approvals, this partnership would be akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders.

“Synergies from the contemplated combination are expected to be significant, creating a global spirits leader with enhanced scale, a powerful brand portfolio, and a balanced geographic footprint, all anchored by two iconic families.

“No agreement has been reached as to the terms of any possible transaction, and there can be no assurance that any such agreement will be reached. Brown-Forman does not intend to comment further unless and until an agreement is reached.”