According to a report in The Wall Street Journal,  Sazerac has approached Brown-Forman seeking a deal between the two whiskey giants. A source has also confirmed the approach to Reuters, with an estimated $US15 billion offer on the table.

It follows Brown-Forman and Pernod Ricard confirming last month that they were in discussions regarding a potential business merger. 

In this case, both Sazerac and Brown-Forman have said they will not be issuing a statement on the matter. According to analysts, Pernod Ricard has ​the inside track on the deal, with the combined company saving as much as $450 million a year in costs.

However, Pernod Ricard CFO Hélène de Tissot told analysts in market update: “Before I begin discussion on our Q3 sales results, I thought I would say a word regarding our press release of 27 March in which we confirm discussions are taking place regarding the potential business combination with Brown-Forman.

“As stated, we did not intend to communicate further until either an agreement is reached or discussions are terminated. Discussions are ongoing, so at this stage, I have no further comment to make.”

A merger between Brown-Forman and Pernod Ricard would create the world’s second biggest spirits maker by sales behind Diageo. However, there are strong synergies between Brown-Forman and Sazerac, with both companies having their principal business headquarters in Louisville, Kentucky and a long histories in bourbon production.

Sazerac’s portfolio includes 550 brands, ranging from Buffalo Trace bourbon to Fireball Cinnamon Whisky and BuzzBallz ready-to-drink cocktails.

Brown-Forman’s portfolio includes whiskey brands such as Jack Daniel’s, Woodford Reserve and Old Forester, tequila brands such as Herradura and el Jimador, Benriach Scotch whisky and a range of RTDs.

“Sazerac traces its roots to a 1630 vineyard and distillery in France. Over the years, the company has acquired brands from Joseph E. Seagram & Sons and Constellation Brands,” The Wall Street Journal said.

Sazerac bought the Southern Comfort and Tuaca brands from Brown-Forman 10 years ago.

Brown-Forman shares surged nearly 14% in Thursday midday trading after The Wall Street Journal reported Sazerac’s approach.

According to TD Cowen analyst Robert Moskow: “Given the scarce-asset nature of the Brown-Forman business and its biggest brand, Jack Daniel’s, we think a buyer would have to pay a 30-35% equity premium to get a deal done with complete change of control.”

Moskow said he wouldn’t be surprised to see other companies join the bidding for Brown-Forman, suggesting Bacardi, Campari and Diageo as other possible contenders.