US: Judge gives A-B InBev, DoJ more time over Modelo deal concerns - report

By | 10 April 2013

The deal has faced a legal challenge from the US Department of Justice

The deal has faced a legal challenge from the US Department of Justice

Anheuser-Busch InBev has been granted more time by a judge to iron out any remaining anti-trust concerns over its US$20.1bn takeover of Grupo Modelo, according to reports. 

The brewer, along with Constellation Brands, last week requested another delay to reach an agreement with the Department of Justice (DoJ), which launched an anti-trust lawsuit in January. Yesterday (9 April) Reuters reported that the request for a stay in proceedings until 23 April has been granted by the court. 

A previous request for a delay was granted last month

However, the companies said last week that an “agreement in principle” has been reached with the DoJ.  

Constellation is aiming to buy out Modelo's share in their Crown Imports US sales and distribution JV, as a result of the deal. A-B InBev was also forced to make concessions on the deal in February, which will see Constellation 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.

However, A-B InBev is still facing a separate lawsuit filed last month by nine individuals seeking to block the deal.

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

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US: Judge gives A-B InBev, DoJ more time over Modelo deal concerns - report

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