Brown-Forman Shares Slip On Reportedly Rejecting Sazerac’s $15B Takeover Bid: Retail Now Awaits ‘Valuation Reset’

• Brown-Forman, a majority of whose voting stock is controlled by Brown family, has historically not been receptive to takeover offers.
• The company had been in preliminary discussions with Sazerac about a potential transaction while it was also holding talks with French spirits maker Pernod Ricard.
• The discussions with Pernod Ricard were terminated in late April after the two couldn’t reach mutual consensus.

Brown-Forman Corp.(BF.B), the maker of Jack Daniel’s whiskey, has reportedly rejected a roughly $15 billion cash takeover offer from rival spirits company Sazerac, after its talks with another interested bidder fell through last month.

Sazerac, the privately held Louisville-based distiller behind brands including Buffalo Trace bourbon and Fireball Cinnamon Whisky, recently offered about $32 per share for Brown-Forman. Advisers for Brown-Forman notified Sazerac on Monday that the company was not interested in pursuing the deal, The Wall Street Journal said, citing people familiar with the matter.

Shares of Brown Forman closed down 1% following the news.  

Brown-Forman, a majority of whose voting stock is controlled by Brown family, has historically not been receptive to takeover offers. The company had been in preliminary discussions with Sazerac about a potential transaction while it was also holding talks with French spirits maker Pernod Ricard regarding a possible “merger of equals.” The discussions with Pernod Ricard were terminated in late April after the two couldn’t reach mutual consensus.

Brown Forman’s Tough Times

In March, Brown-Forman President and CEO Lawson Whiting said that the company was navigating a “challenging operating environment” and expects low visibility for the year amid macroeconomic and geopolitical volatility, coupled with headwinds from consumer uncertainty.

Brown-Forman also then said it expects fiscal year 2026 organic sales and operating income to decline in the low single digits, maintaining prior guidance.

How Did Retail Traders React?

On Stocktwits, retail sentiment around BF.B stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume remained at ‘normal’ levels.

A Stocktwits user opined that the deal rejection is a nail in the coffin for Brown Forman.

Another user said that they are watching for “valuation reset” after the news.

BF.B stock has fallen 25% over the past 12 months.

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