The biggest binge ever
Article Abstract:
The planned merger between Guinness and Grand Metropolitan is the largest to be carried out in the UK and will create the largest liquor company world wide. GMG Brands is the name of the new company to be created from the merger, and it will rank seventh world wide in the market for food and drink. There are a number of cost savings that can be achieved especially in terms of wages and distribution costs. The return on capital will still be low and the brands will have to be developed.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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New concept for Arnault
Article Abstract:
The planned merger between Grand Metropolitan and Guinness is no longer blocked by LVMH which will receive 250 million pounds sterling so that LVMH chairman, Bernard Arnault, ceases to oppose the deal. Arnault had blocked the merger for five months, and has agreed to cease legal proceedings against the merger in exchange for the payment and a seat on the board of the new company, to be called GMG Brands. The merger has been approved by regulators in the European Union.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Cross-Channel crossfire
Article Abstract:
LVMH holds a 14% stake in Guinness, and the chairman of LVMH, Bernard Arnault, has reservations about Guinness' plan to merge with Grand Metropolitan. He is concerned about the diversification involved, into areas such as restaurants and food. LVMH sold part of its Guinness holding in Jan 1997 and there is speculation that the remainder could be sold. Guinness has distribution agreements with Moet Hennessy which would reportedly not be affected by the merger.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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