LONDON (Brand Republic) 鈥 Shareholders in French communications giant Vivendi and Canadian entertainment and drinks group Seagram voted in overwhelming support of a merger between the two and Canal Plus, the French pay-TV company already owned by Vivendi.
Over 90% voted in favour of the deal, which gives the go-ahead for Seagram to start the auction for spirits portfolio, as it looks to concentrate on its entertainment interests.
The merged company will be called Vivendi Universal, and has already been given the all clear by Canadian, US and European regulators.
Vivendi chairman Jean-Marie Messier said the deal showed how the three companies had taken risks and grabbed an opportunity. 鈥淲e have anticipated the future,鈥 he said.
The news of shareholder approval came as French drinks company Pernod Ricard finalised a deal with UK rival Diageo to make a joint bid for the Seagram drinks arm.
Pernod said the deal was complete now the two had decided how they would divide the Seagram brands, which include Captain Morgan rum and Chivas Regal whiskey.
In agreeing everything beforehand, Pernod and Diageo are hoping to avoid a lengthy competition probe if their bid is successful. This is thought to be favoured by Seagram as it can sell the business fast 鈥 by the end of the year 鈥 and see the $7bn it is hoped to raise as quickly as possible.
The Pernod/Diageo joint venture will compete with bids from Allied Domecq in the UK, and a combined offer from Bacardi and Foreman Brown in the US.