NEW YORK, Nov 1 (Reuters) - U.S. wine and spirits maker Constellation Brands Inc said on Sunday it is pursuing discussions with various companies to sell or merge a part of its Australian and U.K. wine operations.
Constellation is 'pursuing a number of opportunities with various parties to improve the prospects of its Australian and U.K. businesses,' the company said in a statement.
Constellation, which owns Robert Mondavi wines, has discussed a potential combination of part of its Australian and U.K. operations with Sydney-based wine company Australian Vintage Ltd, in exchange for a substantial but non-controlling interest in the combined company.
Such a deal would help the companies better tackle the challenges currently facing the wine industry, Constellation Chief Executive Rob Sands said.
If the talks end in a transaction, the combined entity would operate as a standalone wine company listed on the Australian Stock Exchange.
But these discussions are preliminary and may not result in a deal, Constellation said.
Constellation has already sold off some less-expensive brands and closed certain facilities, in the wake of an economic downturn that has softened sales and margins.
(Reporting by Anupreeta Das; Editing by Bernard Orr)
((anupreeta.das@thomsonreuters.com; +1 646-223-6224)) Keywords: CONSTELLATION/ (Click on http://blogs.reuters.com/category/themes/mediafile/ to see Reuters MediaFile blog) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Constellation is 'pursuing a number of opportunities with various parties to improve the prospects of its Australian and U.K. businesses,' the company said in a statement.
Constellation, which owns Robert Mondavi wines, has discussed a potential combination of part of its Australian and U.K. operations with Sydney-based wine company Australian Vintage Ltd, in exchange for a substantial but non-controlling interest in the combined company.
Such a deal would help the companies better tackle the challenges currently facing the wine industry, Constellation Chief Executive Rob Sands said.
If the talks end in a transaction, the combined entity would operate as a standalone wine company listed on the Australian Stock Exchange.
But these discussions are preliminary and may not result in a deal, Constellation said.
Constellation has already sold off some less-expensive brands and closed certain facilities, in the wake of an economic downturn that has softened sales and margins.
(Reporting by Anupreeta Das; Editing by Bernard Orr)
((anupreeta.das@thomsonreuters.com; +1 646-223-6224)) Keywords: CONSTELLATION/ (Click on http://blogs.reuters.com/category/themes/mediafile/ to see Reuters MediaFile blog) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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