Allied Domecq shareholders yesterday voted in favour of a takeover by Pernod Ricard, its French rival, in a £7.6 billion (€11.2 billion) cash and shares deal.

At an extraordinary general meeting, 99.8 per cent of the British-based company's investors were in favour of the move, which will join the world's second and third-largest spirits groups.

The deal has been cleared by European Union and US authorities and by Pernod shareholders, and just awaits approval by Canadian authorities, with the deal expected to be completed on July 26th.

Unable to lead consolidation in the spirits industry by making a major acquisition of its own, Allied was forced to surrender to Pernod after the French company made an offer it could not refuse.

Allied chief executive Philip Bowman said Allied would have liked to have been the one doing the acquiring. "We looked at endless opportunities," he said.

Companies considered as targets by Allied have included Pernod, Bacardi, Brown-Forman and Remy Cointreau.

But all have corporate structures that make them difficult takeover targets.

Meanwhile, Allied has watched consolidation among its customers including retailers, glass suppliers and distributors. And it has watched Diageo, the industry leader, strengthen its spirits and wine business after acquiring Seagram's assets in 2001, leaving a large gap between it and its competitors. - (Financial Times Service)