Constellation Brands offers to buy Jack Daniel's owner: CNBC

Modelo beers are pictured at a BevMo! store ahead of Constellation Brands Inc company results in Pasadena, California U.S., October 4, 2016. REUTERS/Mario Anzuoni

(Reuters) - Constellation Brands Inc STZ.N, maker of Corona and Modelo beers, has offered to buy Jack Daniel's owner Brown-Forman Corp BFb.N, CNBC reported on Tuesday, citing people with knowledge of the matter.

Brown-Forman is not interested in selling, but has informed the board of Constellation Brands' interest, the report said, citing sources. (

Shares of Brown-Forman, which has a market cap of about $22 billion, fell 3.8 percent to $54.93 in late afternoon trading on Tuesday. Constellation slipped 1.3 percent to $181.72.

The Brown family, fifth-generation owners of Brown-Forman, control a majority of voting shares and have historically indicated that they do not want to sell the company, according to the report.

Brown-Forman declined to comment, while Constellation Brands said it was company policy to not comment on rumors or speculation regarding any transaction.

Reporting by Natalie Grover in Bengaluru; Editing by Anil D’Silva