THE biggest merger between two British companies was unveiled yesterday when Grand Metropolitan and Guinness said that they would combine to form a ?23.8 billion group. Guinness Plc owns the majority holding in Guinness Ghana Ltd
The merged companies will be renamed GMG Brands and will constitute Britain's eighth-largest listed company, the world's seventh-largest food and drinks group and its single largest wine and spirits business. The drink brands brought together include GrandMet's Smirnoff vodka, Bailey's and Cinzano with Guinness-owned Johnnie Walker, Bell's Scotch whisky and Gordon's gin. It will also unite GrandMet's US food businesses, which include Burger King, H?agen-Dazs ice cream and Green Giant vegetables, with the famous Guinness brewing business.
The deal, which is subject to European Union and United States regulatory approval, will be followed by a one-off cash payment to shareholders of at least ?2.4 billion, or 60p per share. Guinness shareholders will retain their shares in GMG Brands while GrandMet shareholders will receive one new GMG share for each GrandMet share.
News of the merger sent GrandMet's shares soaring 76 1/2 p to 591 1/2 p, while Guinness leapt 86p to 602 1/2 p.
