United States competition regulators have cleared the sale of Seagram's wine and spirits empire to Pernod Ricard and Diageo - after the British drinks group agreed to sell its Malibu rum brand to resolve antitrust concerns.
The Federal Trade Commission (FTC) voted unanimously to allow the $8.15 billion (€9 billion) deal, which divides the drinks brands of Seagram, a unit of France's Vivendi Universal.
In October, the FTC had voted to block the transaction over fears that Diageo could create a duopoly in the US rum market with industry leader Bacardi.
"The consent order announced today addresses those concerns," FTC competition bureau chief Mr Joe Simons said in a statement.
European and Canadian regulators have already given their approval. The FTC's consent comes exactly a year after Diageo and Pernod announced the Seagram deal.
A spokesman for Pernod, which owns Irish Distillers and whose joint managing director is former IDG chief executive Mr Richard Burrows, said the company was "delighted" with the FTC agreement. The company issued a statement predicting the deal would close "in the next few days" and said it would double its earnings per share in five years.
Diageo said it had entered discussions with a number of parties interested in buying the Malibu brand, which it must sell within six months under the agreement with the FTC.
"These acquisitions will sharpen Diageo's focus on premium drinks and give us further potential to create new value for our shareholders," Diageo chief executive Mr Paul Walsh said in a statement.
Pernod is seen by some industry analysts as a favourite to buy Malibu because the French group has worked closely with Diageo on the deal over the last 15 months.
Diageo is paying $5 billion for such Seagram brands as Captain Morgan and Crown Royal Canadian whisky, while Pernod is paying $3.15 billion for its share. Seagram had been a Canadian company before its takeover by Vivendi Universal.
