Constellation bid for Brown-Forman rejected

Drinks giant Constellation Brands has made a takeover bid for Brown-Forman, owner of the hugely popular Jack Daniel’s brand, which has been rejected.

According to CNBC, the Brown family, the fifth-generation owners of Brown-Forman, rejected the offer as they are not interested in selling the company.

The value of the bid has not been disclosed, but Brown-Forman currently has a market value of around US$22 billion, while Constellation’s value sits at US$35.53 billion.

CNBC reports that shares of Brown-Forman gained 12% over the last week amid takeover rumors.

Following the news of the rejected bid on Wednesday morning, Brown-Forman’s share price fell by over 6%, while Constellation’s share price increased by 1.7%.

Brown-Forman is a public company but has a shareholding controlled by the Brown family. The company owns Jack Daniel’s Tennessee whiskey, revered Bourbon brand Woodford Reserve, The Glendronach Scotch, Herradura and El Jimador Tequila, Finlandia vodka and raspberry liqueur Chambord among other brands.

Despite the rejected bid, Constellation remains interested in a potential merger.

Among the drinks brands in the Constellation portfolio are Corona beer, Svedka vodka, Kim Crawford and Charles Smith Wines.