SPY389.58+9.22 2.42%
DIA315.59+6.14 1.98%
IXIC13,588.83+396.48 3.01%

UPDATE 1-Australia's Treasury Wine dismisses report of plans for a three-way demerger

· 02/07/2021 17:03
UPDATE 1-Australia's Treasury Wine dismisses report of plans for a three-way demerger

Adds background on China tariffs, Penfolds demerger plans

- Treasury Wine Estates TWE.AX, in response to a media report, said on Monday it is not currently considering a demerger of any of its businesses.

The world's largest listed winemaker was responding to a report by The Australian that said it was considering splitting its global operations into three separate businesses.

In November, the company put on hold the planned spinoff of its prized Penfolds label as China was set to impose hefty tariffs of as much as 212% that have battered the winemaker in its biggest market. nL4N2HQ5LNnL1N2IF0JV

Australian exports to mainland China plunged in November and December, largely due to the tariffs, leading to a 14% drop in 2020 exports to A$1.01 billion ($774.06 million) and a 29% slide in volumes.

Treasury Wine affirmed that the Penfolds demerger remains on pause, adding that it continues "assessing internal operating models to deliver long term value through a separate focus across its brand portfolios."


($1 = 1.3048 Australian dollars)


(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Daniel Wallis and Diane Craft)

((NikhilKurian.Nainan@thomsonreuters.com; Twitter: @NikhilKurianN))