US: Agreement "in principle" reached as Anheuser-Busch Inbev closes in on Grupo Modelo
The end is in sight for Anheuser-Busch InBev's proposed takeover of Grupo Modelo
The two US-based firms said late last night (5 April) that their talks with the country's Department of Justice (DoJ) have produced an “agreement in principle” over Anheuser-Busch InBev's (ABI) plans to acquire full control of Modelo. The DoJ had filed an anti-trust lawsuit against ABI's intentions in January, with Constellation, which hopes to buy out Modelo's share in their Crown Imports US sales and distribution JV, applying to be included in the case a week later.
Concessions were made in mid-February, with Constellation planning to take the perpetual rights to Modelo's brands in the US and acquire the Mexican brewer's Compañía Cervecera de Coahuila brewery, in Piedras Negras, Mexico.
“The proposed resolution is substantially in line with the revised transaction announced on 14 February,” said ABI yesterday. “This stay will allow the parties to finalise the … papers required for settlement.”
All five expect this to be the final postponement request.
Should agreement on the transaction be reached, however, ABI will still have to deal with a separate lawsuit filed last month by nine individuals seeking to block the deal.
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