French drinks giant Pernod-Ricard has been given permission to buy British food and drinks company Allied Domecq.
The US Federal Trade Commission (FTC) and the Department of Justice cleared the acquisition subject to a framework agreement under which Pernod will sell certain brands to US firm Fortune Brands.
The US agencies have also granted early clearance of the sale to Fortune Brands of the majority of the brands provided for under the agreement. The FTC would continue its review related to the Canadian Club and Maker's Mark whisky brands, which Pernod has said it would continue to hold on a temporary basis.
Pernod shareholders yesterday approved plans for a capital increase to help fund the €16.10 offer for Allied. The rest of the acquisition will be funded with €9.25 billion of debt. The burden will be eased, however, by the deal to sell brands, including Sauza tequila and Courvoisier cognac for €4.12 billion.
Britain's Diageo has also agreed to buy Pernod's Bushmills whisky and has an option on Allied's Montana wines.
The US clearance comes one week after the European Commission cleared the takeover, provided Pernod sold off certain brands and halted some distribution deals. The acquisition remains subject approval from antitrust authorities in Canada and from Allied shareholders.
It deal will give Pernod the muscle to take on market leader Diageo, which agreed to support the takeover of Allied after being allowed to cherry-pick key brands.