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(Reuters) - Australia’s Treasury Wine Estates Ltd said on Wednesday it will license A$100 million ($77 million) worth of its U.S. brands to The Wine Group as part of an ongoing overhaul of its American operations.
FILE PHOTO: Bottles of Penfolds Grange, a Treasury Wine Estates brand, on sale at a wine shop in Sydney, Australia, August 4, 2014. REUTERS/David Gray
Treasury, the world’s largest listed winemaker, has been looking to shrink its low-end “commercial” U.S. portfolio after competitive pressure dragged on growth even before Chinese import tariffs and a pandemic-driven downturn in demand last year.
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When you think of ASX listed wine shares,
Treasury Wine Estates Ltd(ASX: TWE) is likely the first one to come to mind. And for good reason.
The iconic Aussie wine company has a market cap of more than $8 billion, with a portfolio of globally recognised names including the likes of Penfolds, Beringer, Lindemans and Wolf Blass.
But as you likely know, Treasury Wine has been struggling to diversify from its dependence on the Chinese market, following import restrictions from the Chinese government.
Which brings us to a lesser-known ASX wine share,
6,740 points.
Zip Co Ltd (ASX: Z1P) share price which fell 6.7%.
Here are some of the highlights from the ASX:
The Treasury Wine share price rise more than 6% today on rumours that it’s the potential target of a takeover.
According to reporting by
This is Money, there is talk that the large French business Pernod Ricard is thinking about launching a takeover offer for Treasury Wine Estates.
Pernod Ricard could want to buy some, or all, of Treasury Wine Estates.
Reportedly, there is an offer $15.67 per share, though the reporting couldn’t say if the offer was from the French business or a US private equity group.