The path has been cleared for Pernod Ricard to proceed with its £7.6 billion ($13.9 billion) takeover of Allied Domecq after a rival bidding consortium, led by Constellation Brands, dropped out of the running for the U.K. drinks group.
The Constellation team, which included Brown Forman and the private equity groups Lion Capital and Blackstone Group, said it could not make an offer for the group add up. Richard Sands, the chief executive of the U.S. wine group, said, “Constellation does not believe that the economics justify an offer. Simply put, careful consideration and evaluation of the details following due diligence did not identify sufficient value for submitting an offer.”