March 1, 2011 / 10:29 PM / 8 years ago

UPDATE 1-Chile Concha y Toro to buy US winery for $238 mln

* Deal pending regulatory approval

* Concha y Toro hopes to complete purchase by April (Adds Concha y Toro comment, other details)

SANTIAGO, March 1 (Reuters) - Chile’s leading wine exporter Concha y Toro (CHT.SN) said on Tuesday it has agreed to buy U.S. wine producer Fetzer Vineyards from Brown Forman Corp (BFb.N) for $238 million.

In a regulatory filing, Concha y Toro said California-based Fetzer Vineyards was one of the 10 biggest U.S. wineries by volume and added it hoped to complete the purchase in April, pending regulatory approval.

“The Fetzer acquisition is the largest transaction of this type in the company’s history,” Eduardo Guilisasti, chief executive officer of Concha y Toro, said in a statement.

“We believe that this transaction opens additional growth opportunities globally, as well as in the American market, with its main brands Fetzer and Bonterra,” he added.

Santiago-based Concha y Toro also operates in Argentina and is Latin America’s leading wine producer.

Shares in Concha y Toro closed 0.4 percent firmer on the Santiago bourse on Tuesday, and its U.S.-listed ADRs rose around 2 percent.

Brown Forman said the deal was expected to increase its fiscal 2011 earnings in the range of $0.20 to $0.30 per share. (Reporting by Brad Haynes, editing by Matthew Lewis)

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