Pernod Ricard is set to become the world’s second largest drinks company after a bid to buy UK-based Allied Domecq was accepted last night.

The deal, confirmed by Allied today, is worth £7.4b (US$14.1b) and will add Champagnes Mumm and Perrier Jouët and other wine brands to Pernod’s portfolio which includes Austrlian wine giant Jacob’s Creek.

However, Allied’s super-premium Californian wines, which include Clos du Bois, will be sold on to Fortune Brands, a US-based consumer products group, as part of the takeover.

Fortune will also acquire Cockburns Port as well as Allied’s distribution assets in the UK, Germany and Spain and those of its US wines.

Although the deal has yet to be approved by Allied’s shareholders, the board of directors is ‘unanimously recommending’ they do so.

Allied’s spirits brands including Ballantine’s, Stolichnaya, Beefeater gin will also add to Pernod’s already bulging portfolio.

The French spirits group is now set to take second place behind market leader Diageo, the world’s largest drinks company.

Written by Oliver Styles