Allied-Lyons and Gulf Canada reached agreement.

The two firms said they agreed to jointly operate Hiram Walker Resources Ltd.’s liquor business, thus ending a five-month legal dispute over the group’s ownership that arose from a takeover fight. Allied-Lyons, a major British food and beverage concern, said it would own 51% of the liquor business, while Gulf Canada, a Canadian energy concern that recently acquired control of Hiram Walker, will own 49% of the subsidiary. Gulf Canada is controlled by the wealthy Reichmann family of Toronto. Under the agreement, Allied-Lyons will first buy all of the liquor group for $1.87 billion, less the group’s debt which is estimated to be $698.4 million. That would make Allied-Lyons’ actual cost $1.17 billion.