France's Pernod Ricard looked set to buy drinks group Allied Domecq for £7.6 billion after potential rival bidder Constellation Brands pulled out of the running.
Analysts now expect Pernod's bid to succeed although it still has to get clearance from European Union and US regulators before it can split up Allied's drinks brands between itself and its partners.
Pernod shares jumped more than 2 per cent on relief the French spirits giant would not be forced to pay more in a bidding war with Constellation, while Allied shares slipped as the only credible possible rival bidder pulled out.
Allied shares were off 1.8 per cent at 679-1/2 pence by midday in London, while Pernod shares rose 2.5 per cent to 135.80 euros, making its Allied bid worth 688p, or 7.6 billion pounds.
Britain's takeover panel had given Constellation, the world's biggest wine group and owner of Mondavi, until June 29 to make a bid with its partners Jack Daniel's maker Brown-Forman and private equity groups Lion Capital and The Blackstone Group.
Constellation's Chief Executive Richard Sands was in London earlier this week trying to drum up support for a bid. However, late on Thursday in the United States, Sands pulled out, saying he did not see sufficient value in Allied to make an offer.