US: Constellation Brands 'disappointed' over blocked Anheuser-Busch InBev, Modelo deal
Constellation is hoping to capture full control of Crown Imports
Earlier today (31 January), the US Department of Justice announced it has filed an anti-trust lawsuit over the deal, claiming it will force up the price of beer and give consumers less choice. A-B InBev said it will “vigorously contest” the action.
As part of the deal, Constellation was due to capture full control of Crown Imports by buying out Modelo's 50% stake in the distributor. Constellation and Modelo currently run Crown as a JV.
“Constellation Brands is disappointed with the DoJ decision,” the company said in a statement. “The proposed transaction would further establish Crown Imports as a more independent and competitive entity and solidify its position as a major player in the US beer industry.”
It added: “Given today’s development, we no longer expect the deal to close during the first calendar quarter of 2013 but we ultimately look forward to an expeditious resolution.”
Shares in Constellation were today rocked by the news, initially falling 20% to $31.08, but since recovering slightly to $31.78.
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