Pernod to keep key brands

French wine and spirits firm Pernod Ricard will hang on to five key brands after a Commerce Commission inquiry found they did not have to be sold after all.

In May, the commission launched an inquiry into the implications of Pernod Ricard failing to honour a voluntary commitment to sell the key brands held by Allied Domecq, which the French firm purchased last year.

The commission had cleared the acquisition locally, subject to Pernod Ricard selling Lindauer and the Aquila, Chardon, Chasseur and Italiano brands by July this year.

But the commission has now decided there would not be a substantial lessening of competition if Pernod Ricard did not sell. However, other parties could now challenge the purchase on competition grounds.

A statement yesterday from Pernod Ricard said the firm was pleased with the decision and intended to hang on to the brands.

"The decision reflects our own views in relation to the competitive state of the market and now we can focus on the continued growth and success of all our brands."