The US FTC imposes in a merger the divestiture of a distribution agreement and the installation of a firewall to protect competition in the markets of distilled spirits (Pernod Ricard / V&S Vin & Sprit)

On October 17, 2008, the FTC announced that it had finalized the consent decree entered into with Pernod Ricard and V&S Vin & Sprit to approve the merger of these two companies. Through an acquisition agreement signed on March 30, 2008, Pernod purchased V&S from the Swedish government, the former owner of V&S, for approximately $9 million. This transaction created anticompetitive concerns in the markets for five different distilled spirits, resulting in a consent decree with the FTC to cease distribution in one market and implementing internal firewalls to prevent concerns in the other four markets. Prior to the merger, Pernod was party to an agreement with Spirits International BV that gave Pernod the right to distribute Stolichnaya Vodka, one of the most popular and

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Katherine Whitehead Miller, The US FTC imposes in a merger the divestiture of a distribution agreement and the installation of a firewall to protect competition in the markets of distilled spirits (Pernod Ricard / V&S Vin & Sprit), 14 October 2008, e-Competitions October 2008, Art. N° 53064

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