Australian Vintage in merger talks
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AAP
2009-11-02
Winemaker Australian Vintage Ltd (AVL) says it is in preliminary talks with US-based Constellation Brands Inc (CBI) on merging their Australian and UK wine operations.
AVL said on Monday the discussions were focusing on a possible merger of CBI's Australian and UK wine operations with AVL in exchange for a substantial, but non-controlling interest in the combined entity.
A merged entity would become a standalone wine company, and would be listed on the Australian Securities Exchange, AVL said in a statement.
The synergies created from the merged entity would better position both companies for success in the current challenging operating environment, the company said.
The talks between the two companies are continuing, AVL said.
A number of material issues would be addressed before any deal could be finalised.
