Talks to combine Brown-Forman, the Jack Daniel’s maker, and Pernod Ricard of France have collapsed after both sides failed to agree on merger terms, the companies said on Tuesday.
The two alcohol companies had disclosed their discussions last month, saying a deal would be structured as a merger of equals. The companies did not reveal the merger terms that were under consideration or what had caused their negotiations to break down.
The collapse of the talks could pave the way for the spirits company Sazerac to acquire Brown-Forman. Sazerac, which like Brown-Forman is based in Louisville, Ky., has been preparing an alternative all-cash $15 billion bid.
The potential deal-making comes as the alcohol industry grapples with tariffs, supply chain challenges and overall declines in alcohol consumption.
Pernod Ricard was created though the merger of two French spirit companies in 1975. It has grown with a series of acquisitions, including its purchase of Seagram’s in 2001 and Absolut Vodka in 2008. The Ricard family still owns about 15 percent of the company’s stock.
Shares of Brown-Forman are controlled by the family of its founder, George Garvin Brown, and the family was expected to have a role in the merged company. Brown-Forman, which is more than 150 years old, owns brands that include Woodford Reserve, Diplomático Rum and the Glendronach.
Sazerac recently hired the investment bank Centerview Partners and the law firm Woolery & Co to advise on its efforts.
The company’s namesake brand, Sazerac de Forge & Fils, was the original spirit used in the Sazerac cocktail.
Lauren Hirsch is a Times reporter who covers deals and dealmakers in Wall Street and Washington.
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