Australian Vintage and Constellation Brands enter merger discussions
Australian Vintage announced today that it is in discussions with Constellation Brands “which may result in a possible combining of part of CBI’s Australian and UK wine operations with AVL in exchange for a substantial, but noncontrolling, interest in the combined entity”.
The winemaker said that the difficult trading conditions were the impetus for the discussions.
“This potential combination would create synergies between the two companies, better positioning both for success in the current challenging operating environment,” Australian Vintage advised in a statement. “If a transaction results the combined companies would operate as a stand alone wine company, which would continue to be listed on the ASX.”
“As the discussions between CBI and AVL are ongoing there are a number of material issues which need to be addressed before a deal can be finalised. As a result the discussions are preliminary and may not lead to such a transaction.”
Australian Vintage added that they would keep the market informed of any developments.