Brown‑Forman Corporation (NYSE: BFA, BFB) announced that the company and Pernod Ricard have terminated discussions regarding a potential business combination, as the companies were unable to reach mutually agreeable terms. 

The announcement came on Tuesday.

Brown‑Forman and Pernod Ricard previously confirmed discussions on March 26 and noted there could be no assurance that any such agreement would be reached. In the meantime, Sazerac had entered the equation as a potential buyer of the Louisville-based Brown-Forman.

Brown-Forman stocks dropped by about 5% following the announcement, according to Reuters and other media.

Brown‑Forman issued the following statement:

“We intend to create long-term value for all stakeholders by focusing on our strategic and operational priorities. This includes unlocking future growth by expanding our geographic footprint, continuing to build brands that resonate with consumers, and enhancing operational efficiency.”

A Pernod spokesperson told Reuters that the decision to end negotiations ​was mutual, and that the decision involved a “combination ‌of ⁠elements” related to debt structure and economics. Both parties reportedly believed moving on from the merger was in the best long-term interest of shareholders.

It is unclear if Sazerac, which recently offered to acquire Brown-Forman for approximately $15 billion, still has a chance to complete its bid, but according to Reuters, a source said the family that controls the whiskey-making corporation favored a potential sale to Pernod Ricard.

Read more: Sazerac Shows Interest in Acquiring Brown-Forman, Per Reports

About Brown-Forman

Brown-Forman Corporation has been building spirits brands for more than 150 years, with a team of approximately 5,400 employees worldwide. The company distributes beverages in more than 170 countries. Learn more at brown-forman.com.