Paris, Dec 20 : Britain's Diageo and France's Pernod Ricard have jointly sealed an agreement to buy Seagram's alcoholic drinks business for $8.15 billion, subject to anti-trust approval, the companies said in a statement.Diageo is to stump up $ 5.0 billion and Pernod Ricard the remaining $ 3.15 billion to buy the business from French media giant Vivendi Universal, the Anglo-French alliance said yesterday.The two have agreed to divide up the results of the sale between them, and the statement said they would be selling off parts that neither of them wanted to keep.
It said the deal "further reinforces Diageo's position as the world's leading beverage alcohol company."
Diageo will notably gain the Crown Royal and VO Canadian whisky brands, as well as Captain Morgan rum and 7-Crown American whisky.
Pernod Ricard will be acquiring brands with total annual sales of 1.2 billion dollars, including Glen Grant, Chivas Regal and Glenlivet Scotch whisky, and Martell cognac.
The deal arises from the acquisition earlier this month of the whole of Seagram Corporation, including its Universal film division, by the French services and media conglomerate Vivendi. This resulted in the creation of a multimedia giant, Vivendi Universal, with combined annual sales of up to $ 57.5 billion.
Vivendi Universal then put up for sale the Seagram drinks businesses in order to pay off the debt incurred in its acquisition of both Seagram and the French pay-TV company Canal Plus.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.