US: Anheuser-Busch InBev, Constellation Brands in talks with DoJ over Grupo Modelo buy

By | 21 February 2013

A-B InBev is bidding to take control of Grupo Modelo, but faces a delay

A-B InBev is bidding to take control of Grupo Modelo, but faces a delay

Anheuser-Busch InBev and Constellation Brands are conferring with the US authorities over the Grupo Modelo deal, with all parties aiming to delay legal proceedings in the anti-trust case until next month.

The two companies said late yesterday (20 February) that they are “engaged in discussions” with the Department of Justice (DoJ), along with Grupo Modelo, in a bid to resolve issues over the US$20.1bn deal. Last month, the DoJ filed an anti-trust lawsuit against A-B InBev's proposed acquisition of Modelo over concerns the move would lessen competiton in the US beer market and inflate prices. 

But, A-B InBev and Constellation said in separate statements yesterday that, along with the DoJ, they will ask the court for a halt in all legal proceedings until 19 March.

Earlier this month, Constellation applied to be involved in the high-profile case. The company is set to take full control of its US JV with Modelo once A-B InBev completes its takeover.

Both companies said there are no guarantees the discussions with the DoJ will be “successful”, but Constellation added that it “believes that the revised transaction resolves the concerns raised in the DoJ's complaint”. 

Both Constellation and A-B InBev have previously spoken out against the lawsuit.

In a bid to satisfy concerns A-B InBev last week announced a string of concessions, including the sale of Modelo's Piedras Negras brewery and the US rights to all the Mexican brewer's brands in perpuity to Constellation. 

Expert analysis

2012 The U.S. Beer Market

This "value set" report combines Beer in the U.S., Imported Beer and Specialty Beer and Microbrewery Markets to create the most exhaustive study of the U.S. beer market available. An $18,000+ value that is priced much lower, it scrutinizes all aspects, covering state and regional markets, distribution channels, brewers and brands, imports, exports, packaging, pricing, advertising, demographics and projections. It also provides in-depth examination of the mergers, acquisitions and joint ventures reshaping the industry plus projections through 2016.

Sectors: Beer & cider, Mergers & acquisitions

Companies: Modelo, InBev, Constellation

View next/previous articles

22 Feb 2013 -

just the Research

Currently reading -

US: Anheuser-Busch InBev, Constellation Brands in talks with DoJ over Grupo Modelo buy

There are currently no comments on this article

Be the first to comment on this article

Related research

Anheuser-Busch InBev NV/SA : Consumer Packaged Goods - Company Profile, SWOT & Financial Report

Canadean's "Anheuser-Busch InBev NV/SA : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts,major product...

Anheuser-Busch InBev NV in Alcoholic Drinks (USA)

Anheuser-Busch InBev (A-B InBev) is facing challenges in the mature US beer category by focusing on premium and craft beer. As the US Justice Department precluded A-B InBev from controlling the lucrative Modelo brands in the US, the company will push...

Anheuser-Busch InBev NV in Beer (World)

A-B InBev is the leading global brewer with 18% of global beer volumes, and the company is well placed to take advantage of expected volume growth in emerging markets, especially in Mexico following its Modelo acquisition, and value growth in high-ma...

Related articles

US: MillerCoors to launch new strong beer, cider brands

MillerCoors has confirmed it will introduce a new strong beer and high abv hard cider in the US next year.

In the Spotlight - Red Bull vs Redwell Brewing

It was the turn this week of a small brewery in Norwich to wander blinking on to the nation's front pages, in a classic David-and-Goliath story that also fanned the Twitter flames. Though, as it turned out, not all was as it first seemed.

UK: Red Bull issues trademark threat to Redwell Brewing

A UK craft brewer warned by Red Bull to withdraw its trademark application has said changing its name would be "disastrous" for the fledgling company.

Read more on this hot issue

Round-Up - Anheuser-Busch InBev takes control of Grupo Modelo

This week has been dominated by Anheuser-Busch InBev's move to take control of Grupo Modelo. Here's just-drinks' coverage of the saga.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page