Sweden sells Absolut to Pernod for 5.6 billion euros

0 Comments | AFP, March, 2008

STOCKHOLM (AFP) — The Swedish government said on Monday that it had sold the Vin & Sprit group that owns Absolut vodka to the giant drinks company Pernod Ricard of France for 5.626 billion euros (8.88 billion dollars).

With the purchase, Pernod Ricard will become the world's leading provider of premium spirits, and will be propelled to a shared first place when it comes to overall wine and spirits sales, with 91 million cases of alcoholic drinks sold each year.

British Diageo currently dominates the sector. But the price of Pernod Ricrad shares was showing a fall of 4.32 percent to 65.15 euros in mid-day trading. Analysts said the price seemed high.

Swedish Financial Markets Minister Mats Odell said Pernod Ricard had made the best offer of four on the table...