- Pernod Ricard ( OTCPK:PRNDY ) ( OTCPK:PDRDF ) is raising its minority stake in Sovereign Brands' portfolio of super premium wine and spirits brands.
- The transaction is expected to close in Nov 2022. It remains subject to fulfilment of customary closing conditions, including regulatory clearances.
- Upon closing, Sovereign Brands will be fully consolidated into Pernod Ricard's ( OTCPK:PRNDY ) ( OTCPK:PDRDF ) financial statements due to various call options through which Pernod Ricard may look to further increase its stake in the partnership in the future.
- The consolidation is expected to be accretive on Pernod Ricard's operating margin. The investment will also strengthen Pernod Ricard ( OTCPK:PRNDY ) ( OTCPK:PDRDF ) exposure to the U.S. market, while boosting its consumer-centric innovation pipeline.
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Pernod Ricard to increase minority stake in Sovereign Brands