FTC Greenlights Gallo-Constellation Deal, Now Expected To Close Week Of January 4December 27, 2020
The U.S. Federal Trade Commission (FTC) has granted clearance for Constellation’s $1 billion sale of more than 30 lower-end wine brands to E.&J. Gallo, after a lengthy review.
The FTC has accepted the proposed consent order in connection with the transaction, which is now expected to close the week of January 4, at which time the two parties will confirm the final financial details.
In addition to the mammoth $1 billion deal, the consent order also covers Constellation’s separate transactions with Sazerac to divest the Paul Masson Grande Amber Brandy brand and with Vie-Del Company to divest certain brands used in Constellation’s grape juice concentrate business. Likewise, the FTC approved Constellation’s separate but related agreement with Gallo to divest its Nobilo wine brand. Those transactions “will be completed in close proximity to the close of Constellation’s larger transaction with Gallo,” Constellation said.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.