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Home / Business and Economy / Treasury Wines Buys Back California Stock in $65M Deal

Treasury Wines Buys Back California Stock in $65M Deal

10 Feb

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Summary

Treasury Wines will repurchase unsold inventory from a major US distributor.
The settlement with Republic National Distributing Co. will cost $65 million.
The deal aims to mitigate disruptions from the distributor's California exit.

Treasury Wines Buys Back California Stock in $65M Deal

Treasury Wines Estates Ltd., known for its Penfolds brand, has agreed to a settlement with Republic National Distributing Co. (RNDC), a major US distributor exiting the California market. The agreement, announced on Tuesday, involves Treasury Wines repurchasing its inventory held by RNDC in California. This move is expected to result in a net cash outflow of $65 million within the six months ending June. This development comes after Treasury Wines' shares hit a decade low in December due to a substantial write-down of its US business value and disruptions in both the American and Chinese markets.

In parallel, China's ambition to become a major aerospace player hinges on developing reliable jet engines. Commercial Aircraft Corp of China Ltd. (Comac) faces significant challenges, as evidenced by its 2025 C919 deliveries falling far short of targets. A US suspension of jet engine exports, though temporary, highlighted Comac's reliance on foreign suppliers like CFM International, a joint venture between GE Aerospace and Safran SA. This situation underscores the global aviation supply chain issues affecting even established manufacturers like Airbus and Boeing, who are grappling with multi-year backlogs.