Australian Wine Holdco Limited (AWL), a consortium of international institutional investors, has welcomed the decision by the Australian Competition and Consumer Commission (ACCC) to grant merger clearance for the combination of Accolade Wines with Pernod Ricard’s Australian, New Zealand and Spanish wine businesses.
Accolade’s acquisition relates to Pernod Ricard Winemakers’ BrandCo division, which owns and manages a portfolio of Australian, New Zealand and Spanish wines including Campo Viejo, St Hugo, Church Road, Stoneleigh, and Jacob’s Creek.
Accolade owns wine brands including Berri Estates, Grant Burge, Petaluma, Hardys and St Hallett.
Speaking about the decision not to oppose the deal, ACCC Commissioner, Dr Philip Williams said: “Based on our investigation, we consider the proposed acquisition is unlikely to substantially lessen competition in wine processing and packaging services, and similarly is unlikely to substantially impact competition in the wholesale supply of wine.
“We considered that if the acquisition went ahead, a number of other businesses will continue to offer competing processing services and also wine.”
The ACCC’s said that information and feedback gathered during its investigation also indicated that the acquisition is unlikely to substantially lessen competition in the market for the purchase of wine grapes.
“We found that the acquisition would not materially alter competition in grape acquisition markets where Accolade and Pernod Ricard currently overlap,” Dr Williams said.
AWL spokesperson, Joshua Hartz said: “We welcome the ACCC’s decision. We have worked closely with all stakeholders to progress this combination and today’s milestone takes us a step closer. Importantly, management are focused on preparations for a smooth integration of the businesses once the deal completes.”
“Both Accolade Wines and Pernod Ricard have a long, proud history as world-class wine producers. Combining Accolade Wines with the Pernod Ricard assets will create a more certain and financially sustainable future for the business, allowing us to better serve our customers, in more segments and more geographies.
“Backed by AWL, the combined business will be better able to adapt to changing consumer tastes and meet the structural challenges facing the global wine industry.”
The transaction remains subject to other customary closing conditions, which need to complete before the businesses can be combined.