Constellation and Vintage look for ACCC approval over possible tie-up
ASX-listed wine businesses Constellation Brands and Australian Vintage have applied for informal merger clearance from the Australian Competition and Consumer Commission as talks continue for a possible tie-up between the two firms.
The companies advised that talks “may result in a possible combining of part of CBI’s Australian and U.K. wine operations with AVL in exchange for a non-controlling, 50% equity interest in the combined entity” but warned that there is no certainty of a deal being struck.
“The submission has been made in advance of any binding agreement being reached between CBI and AVL in order to provide the ACCC with sufficient time to consider all competition issues,” Australian Vintage said in a statement. “The discussions between CBI and AVL remain ongoing and it is still the case that they may not lead to such a transaction.”