NEW YORK, Nov 1 (Reuters) - U.S. wine and spirits maker Constellation Brands Inc said on Sunday it is pursuing discussions with various companies to sell or merge a part of its Australian and U.K. wine operations.
Constellation is "pursuing a number of opportunities with various parties to improve the prospects of its Australian and U.K. businesses," the company said in a statement.

Constellation, which owns Robert Mondavi wines, has discussed a potential combination of part of its Australian and U.K. operations with Sydney-based wine company Australian Vintage Ltd, in exchange for a substantial but non-controlling interest in the combined company.
Such a deal would help the companies better tackle the challenges currently facing the wine industry, Constellation Chief Executive Rob Sands said.
If the talks end in a transaction, the combined entity would operate as a standalone wine company listed on the Australian Stock Exchange.
But these discussions are preliminary and may not result in a deal, Constellation said.
Constellation has already sold off some less-expensive brands and closed certain facilities, in the wake of an economic downturn that has softened sales and margins.
(Reporting by Anupreeta Das; Editing by Bernard Orr)

((anupreeta.das@thomsonreuters.com; +1 646-223-6224)) Keywords: CONSTELLATION/ (Click on http://blogs.reuters.com/category/themes/mediafile/ to see Reuters MediaFile blog)

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