Australian Wine Holdco Limited (AWL), a consortium of international institutional investors, has welcomed the Australian Competition and Consumer Commission’s (ACCC) approval of the merger between Accolade Wines and Pernod Ricard’s wine operations in Australia, New Zealand, and Spain.
Accolade’s acquisition pertains to Pernod Ricard Winemakers’ BrandCo division, which manages a portfolio that includes well-known wine brands such as Campo Viejo, St Hugo, Church Road, Stoneleigh, and Jacob’s Creek. Meanwhile, Accolade boasts its own esteemed labels, including Berri Estates, Grant Burge, Petaluma, Hardys, and St Hallett.
ACCC Commissioner Dr. Philip Williams addressed the decision, stating, “Based on our investigation, we consider the proposed acquisition unlikely to substantially lessen competition in wine processing and packaging services, nor will it significantly impact the wholesale supply of wine. If the acquisition proceeds, numerous other businesses will remain to offer competing processing services and wine products.”
Additionally, the ACCC noted that insights gathered during its investigation indicated that the merger is unlikely to materially affect competition in the market for wine grapes. “Our findings show that the acquisition will not substantially change competition in grape acquisition markets where Accolade and Pernod Ricard currently overlap,” Dr. Williams added.
Joshua Hartz, a spokesperson for AWL, expressed optimism regarding the ACCC’s decision: “We welcome the ACCC’s ruling. Our collaboration with all stakeholders has been pivotal in advancing this merger, and today’s milestone brings us closer to completion. Management is prioritizing preparations for a seamless integration of the businesses once the deal is finalized.”
Hartz further emphasized the historical significance of both companies, stating, “Accolade Wines and Pernod Ricard each have a long, proud legacy as world-class wine producers. Merging Accolade with Pernod Ricard’s assets will foster a more stable and financially sustainable future, enabling us to serve our customers across more segments and geographies.”
The merger transaction is still pending customary closing conditions that must be fulfilled before the companies can officially combine.
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