Pernod Ricard gets Absolut vodka for £4.4bn

French drinks giant Pernod Ricard has bought Vin & Spirit (V&S), the Swedish company that owns the Absolut vodka brand, for approximately £4.4bn, including debt.

With Absolut claiming to be the number one premium vodka in the world, and with sales of 11 million nine litre cases in 2007, the move boosts Pernod's range and market position in a number of markets, including the US.

V&S was one of a number of businesses owned by the Swedish government that were last year earmarked for privatisation.

The deal, being financed by a consortium of six international banks, sees Pernod become the co-leader in the global wines and spirits industry, with a claimed 27 per cent worldwide leadership share in premium spirits, and volumes of 91 million cases.

Pernod said the acquisition, which does not include V&S' 10 per cent interest in Beam Global Spirits & Wine, was expected to generate pre-tax synergies of between €125m (£98m) and €150m (£119m) annually.

Patrick Ricard, chairman and chief executive of Pernod Ricard, said the V&S move represented the third "transformational" acquisition since the Seagram and Allied Domeq deals.

"Absolut is an exceptional brand. Its integration within our portfolio of premium brands combined with the strength of our worldwide distribution network paves the way for outstanding growth prospects.

"We become thus the co-leader of the global wine and spirits industry."

Other groups interested in buying were believed to be US-owned Fortune Brands.