During this period, the height of the business, it was largely permitted to develop with autonomy, albeit with incentive to strongly promote the Seagram brands.

The two companies are expected to split the Seagram brands between them and in this way Diageo hopes to avoid antitrust issues.

Grey also handles Seagram brands like Glen Grant whisky and Cacique rum overseas.

Its clients include several Seagram brands, like Chivas Regal and Captain Morgan rum.

Diageo and Pernod are unlikely to keep all the Seagram brands, and further divestitures are expected.

To generate more profit from the wine and spirits business, cost cutting was implemented causing detriment to the Seagram brands and allowing competitors to increase their market share.

Diageo and Pernod Ricard will divide most of the Seagram brands and sell the smaller ones.

The Seagram brands are expected to bring more than $7 billion, roughly equal to Allied Domecq's sales last year.

The analysts estimated that the Seagram brands were worth about 10.5 times their earnings before taxes, which are expected to total $723 million when the fiscal year ends this month.

Allied, the world's second-largest beverage company, had a chance to close the gap with Diageo, the leader, by buying the Seagram brands.