Around 11 million cases of Absolut vodka are sold worldwide every year.

Pernod Ricard has added the world’s leading vodka brand, Absolut, to its stable, through its acquisition of Vin & Sprit.

The French spirits and wine business will pay €5.6 billion (£4.5 billion) for the Swedish company, which also owns the Cruzan rum brand.

The acquisition, which is timed for completion during summer 2008, will propel Pernod Ricard to the number two spot in the US spirits market – with a share of around 14%.

Absolut is the top-selling premium spirits brand in the US, with more than five million nine litre cases sold every year. Worldwide, annual sales top 11 million cases.

Pernod Ricard has secured the deal through the backing of six banks – BNP Paribas, Calyon, JPMorgan, Natixis, The Royal Bank of Scotland plc and Société Générale. The company said it expects the transaction to generate significant pre-tax synergies of an estimated €125-150m annually.

Patrick Ricard, Pernod Ricard’s Chairman and CEO, commented on the deal: “Absolut is an exceptional brand. Its integration within our portfolio of premium brands combined with the strength of our worldwide distribution network paves the way for outstanding growth prospects. We become thus the co-leader of the global wine and spirits industry.”

Pierre Pringuet, Managing Director, added: “We are eager to welcome the V&S teams into the Pernod Ricard Group. The integration will be made easier by our decentralised organisation model. The integrity of the V&S group will be maintained and it will become a new “brand-owner” and a distribution platform for the Group in Nordic countries.”

By Natasha Piscitelli