Benzinga | Dec 24, 2020 08:00AM EST

Constellation Brands Receives Clearance From the U.S. Federal Trade Commission to Close Wine and Spirits Transaction With E. & J. Gallo

Constellation Brands, Inc. (NYSE:STZ), a leading beverage alcohol company, announced today that the U.S. Federal Trade Commission (FTC) has accepted the proposed consent order in connection with its transaction with E. & J. Gallo Winery to divest a portion of Constellation's wine and spirits portfolio principally priced at $11 retail and below, including certain related facilities located in California, New York, and Washington state. This transaction is scheduled to close the week of January 4, 2021, upon which time final transaction details will be provided.

The FTC's acceptance of the proposed consent order also includes Constellation's separate transactions with Sazerac to divest the Paul Masson Grande Amber Brandy brand and with Vie-Del Company to divest certain brands used in Constellation's grape juice concentrate business. Additionally, the FTC approved Constellation's separate but related agreement with Gallo to divest its Nobilo wine brand. These transactions will be completed in close proximity to the close of Constellation's larger transaction with Gallo.

The acceptance by the FTC satisfies all required antitrust clearances needed to be obtained for these transactions to close.