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(Sharecast News) - Jack Daniel's owner Brown-Forman and French drinks maker Pernod Ricard confirmed on Thursday that they are in talks about a possible merger.
The US drinks group said in a statement: "We note the recent market rumours regarding a potential business combination involving BrownForman and Pernod Ricard.
"BrownForman regularly explores and evaluates strategic opportunities, and can confirm it is engaged in discussions with Pernod Ricard."
If agreed, the partnership would be "akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders," it said.
Brown-Forman, which also owns Woodford Reserve bourbon whiskey, said synergies of a potential combination are expected to be "significant, creating a global spirits leader with enhanced scale, a powerful brand portfolio, and a balanced geographic footprint, all anchored by two iconic families".
Meanwhile, Pernod - the owner of Absolut, Malibu and Beefeater London, among others - said "operational synergies would be significant, leveraging Brown-Forman's iconic brands, including Jack Daniel's, and Pernod Ricard's global distribution strength and exposure to highest growth potential markets".
Both companies said there can be no assurance that any agreement will be reached.
At 2300 GMT, Brown-Forman shares were up 9.6% at $25.74. Pernod Ricard closed down 5.7% at 59.94.
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