French drinks group Pernod Ricard today was close to selling the country's second-biggest soft drinks brand, Orangina, to Cadbury Schweppes as part of a euro 700 million ($593 million) deal.
The deal, if approved by regulators and Orangina's workers, would leave Pernod to focus on its spirits business after its recent purchase of Seagram's drinks business. It would double Cadbury's share of the French soft drinks market to 19 per cent.
Shares in Pernod leapt to a record high on the news, and Cadbury stock rose over 1 per cent. By 8:45 (GMT) Pernod was more than 3 per cent higher at 84.35 euros and Cadbury was almost 1 percent firmer at 458-1/2 pence.
Cadbury and Pernod have been in exclusive talks since last year, after Pernod's agreed sale of Orangina to Coca Cola was blocked by French competition authorities.
