French spirits giant Pernod Ricard and Jack Daniel's owner Brown-Forman said Thursday they are in talks over a potential merger that could create a major industry force, as alcohol consumption weakens worldwide.
Pernod said the envisaged deal would represent a "merger of equals" and create a global spirits leader built around their flagship brands, including Absolut Vodka and Jameson whiskey.
Brown-Forman, responding to recent market speculation, confirmed it was in discussions and said it "regularly explores and evaluates strategic opportunities".
The French beverages company said the tie-up could unlock significant "operational synergies" by combining Brown-Forman's iconic labels with its own distribution strength and exposure to higher-growth markets.
Both groups said the combined portfolio would benefit from balanced geographic reach anchored in two historic brand families.
The discussions come as the alcohol sector faces a difficult global environment, with consumption falling among younger drinkers and new tariffs - particularly in the US -hurting major producers.
Pernod Ricard has been especially affected by US duties.
The companies said they would not comment further until a definitive agreement is reached or talks are abandoned.
Bloomberg earlier reported that Pernod Ricard had entered preliminary discussions over a possible deal.
Pernod Ricard is valued at more than €15 billion (£13bn), while Brown-Forman is worth around $12bn (£9bn).
(AFP)