Released by AgNet West …
It looks like there has been a delay in the E&J Gallo-Constellation deal. After Federal Trade Commission (FTC) regulators reviewed the $1.7 billion deal between Constellation Brands and E&J Gallo Winery, additional information and documents have been requested from both companies.
When the deal was initially announced back in April, the transaction was projected to be completed by the end of May. After filing with the U.S. Securities and Exchange Commission, the deal is not expected to be finalized until the second half of the calendar year.
The agreement includes Gallo’s acquisition of 34 wine and spirit brands from Constellation, priced at $11 and below. Some of the brands included as part of the deal consist of, Mark West, Ravenswood, Wild Horse and Black Box.
Constellation has indicated that the company will continue operating its entire wine and spirits business until the deal is officially approved by the U.S. Department of Justice and the FTC.