Pernod Ricard wants to acquire Jack Daniel’s

If the merger goes through, it will create a global leader in spirits: Pernod Ricard, with brands such as Absolut Vodka, Havana Club rum, and Jameson whiskey, is one of the largest players in Europe. Brown-Forman is best known in the U.S. and boasts a strong portfolio of premium brands, including Jack Daniel’s whiskey, Old Forester, and Glenglassaugh.

In a press statement, Pernod Ricard cites the need for greater scale, while Brown-Forman acknowledges that it regularly evaluates strategic opportunities, Retail Detail reports. Both companies are seeking ways to strengthen their positions in a market where consumers are drinking less alcohol and increasingly opting for cheaper alternatives.

The two merger candidates emphasize that this would be a “merger of equals.” Pernod Ricard has a market value of over 15 billion euros, while Brown-Forman is valued at approximately 12 billion dollars (about 10.4 billion euros). At the same time, they stress that it is not yet certain whether an agreement will be reached, and will only communicate further once a definitive agreement is in place or if the talks are terminated.