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E&J Gallo and Constellation Modify Terms of Sale - Reaction
Dec 16, 2019
(WB) - Last week's news that E&J Gallo and Constellation Brands modified the terms of the sale of dozens of Constellation labels to address competitive concerns from federal regulators ends months of uncertainty.
The new $1.1 billion agreement to divest lower-priced brands and other assets may close in March 2020 – or $600 million less than originally planned, the companies announced Thursday. The issues raised included anti-competitive concerns related to sparkling wine, brandy, dessert wine and concentrate products, according to Constellation.
Rob McMillan, executive vice president and founder of Silicon Valley Bank’s wine division, welcomed Thursday’s announcement.
“It’s good news because it’s actually going to go through,” McMillan said.
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