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Pernod Ricard and Brown‑Forman Confirm Talks on Possible Merger of Equals

The talks signal a push to build scale to counter weaker demand plus U.S. tariffs.

Overview

  • Both companies confirmed Thursday they are holding exploratory talks on a merger‑style partnership and said there is no certainty of a deal.
  • A combined group would pair Jack Daniel’s and other Brown‑Forman labels with Pernod Ricard’s global distribution and reach into faster‑growing markets.
  • Investors reacted to the reports with Pernod Ricard shares falling about 5.7% in Paris while Brown‑Forman rose roughly 9.6% in New York.
  • Recent results show pressure on both groups, with Pernod Ricard’s first‑half profit down 18% and revenue down 15% and Brown‑Forman’s nine‑month sales down about 2%.
  • The talks remain non‑binding with no further comment promised until a final agreement or a breakup of discussions, and any deal would need shareholder and regulatory approvals.