France's Pernod Ricard and US based Fortune Brands have agreed to a takeover of Allied Domecq, valuing the British spirits group at £7.4 billion, according to the Wall Street Journal.
The deal is expected to be announced on Thursday, when Allied reports its first-half results.
Pernod and Fortune are set to offer the equivalent of 670 pence per share for Allied, valuing the Bristol, England based firm at about £7.4 billion.
The deal would be the biggest announced takeover in Europe this year. Under terms of the deal, Pernod would acquire about two-thirds of Allied's spirits brands by value, vaulting the Paris-based company into closer competition with Diageo PLC, the London-based company that is currently the world's dominant No. 1 in spirits with brands such as Smirnoff vodka and Johnnie Walker Scotch.
Allied Domecq and Pernod Ricard have been neck-and-neck for the No. 2 spot in the world in spirits by value.
Allied and Pernod declined to comment today on the deal.
