A new global force in premium wines was created this week when two of the major Australian operations joined forces. Southcorp has acquired the country's largest family owned winery, Rosemount, for A$1.4bn (£500m). The joint portfolio will feature a number of leading brands including Penfolds. Lindemans, Wynn's, James Herrick and Rosemount. Rosemount was owned by the Oatley family which has taken equity in Southcorp and places on the board for deputy chairman Keith Lambert and chief executive Sandy Oatley. Rosemount's founder Robert Oatley is expected to be elected to the board and become deputy chairman. Lambert has been asked to head the combined wine group. The joint operation in the UK and Europe will be led by Mario Micheli, Southcorp's current European president. Southcorp's chairman Rick Allert said: "This is a company transforming transaction for us in our path to becoming the leading global branded wine company, with 75% of our future earnings now coming from wine." Rosemount's UK md Peter Darbyshire maintained it would be business as usual, probably until both companies' financial years come to an end in June. He said they were both being run as lean operations and there would probably be room for everyone in the new business. The merger is the latest stage in the global consolidation of the wine business which has included the recent acquisition of the New Zealand company Montana by Lion Nathan. Diageo has increased its interest in wine through its part of the Seagram purchase with Pernod Ricard. It is also thought to be in takeover discussions with family owned Californian winemaker Kendall Jackson. Darbyshire said: "It is all about brands. Retailers want the margins that brands can give and consumers want the reassurance of brands. Southcorp has proved that wine can be attractive to shareholders and there is massive potential for the global wine market." {{NEWS }}

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