US/MEXICO: Anheuser-Busch InBev agrees to buy remaining Grupo Modelo stake for US$20bn
By James Wilmore | 29 June 2012
 |
Grupo Modelo has agreed to sell to A-B InBev |
Anheuser-Busch InBev has agreed to buy the 50% share in Grupo Modelo it does not already own in a deal worth US$20.1bn.
Under the deal, announced this morning (29 June), A-B InBev will pay US$9.15 per share in cash. Separately, Grupo Modelo will sell its 50% stake in Crown Imports LLC to Constellation Brands for US$1.85bn.
Grupo Modelo's name will be retained and its headquarters will remain in Mexico City, A-B InBev confirmed. The Budwesier brewer said it expected the combination to yield annual synergies of "at least US$600m".
Carlos Brito, A-B InBev's CEO, said: “There is tremendous opportunity from combining two leading brand portfolios and further expanding Grupo Modelo’s brands worldwide through AB InBev’s extensive global distribution network."
The two companies have endured a fractious relationship in recent years, after Modelo became part of the merged A-B InBev in 2008. But speculation arose earlier this week that a deal could be on.
Carlos Fernández, Grupo Modelo's chairman and CEO said today: “We have worked together with Anheuser-Busch InBev in a productive decades-long partnership, and it is time to cement our relationship through this merger.”
The deal is expected to complete in the first quarter of 2013.
Sectors: Beer & cider, Mergers & acquisitions
Companies: InBev, Modelo, Constellation
View next/previous articles
2 Jul 2012 -Currently reading -
US/MEXICO: Anheuser-Busch InBev agrees to buy remaining Grupo Modelo stake for US$20bn
Related research
Grupo Modelo SA de CV in Beer (World)
Grupo Modelo was the seventh largest global brewer in 2011. The company is the leading player in its domestic Mexican market, and its Corona Extra brand is exported to 180 countries. Modelo is well placed for future growth in Mexico, and should be ab...
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 aspect...
Related articles
Review of the Year 2012 - Part I: Beer & Cider
With Christmas fast approaching, it's the time of year when just-drinks takes its annual look back at the past 12 months. Between now and the end of the year we'll assess how the soft drinks, spirits, wine and bottled water sectors have fared in 2012. Up first, however, is beer and cider. just-drinks' deputy editor, James Wilmore, takes us through the highs and lows for the long alcoholic beverage (LAB) category.
NETHERLANDS: Heineken, Bavaria "disappointed" after ECJ rejects cartel fine appeal
Heineken and Bavaria have said they are "disappointed" after Europe's highest court rejected their appeals against a reduction in fines for their part in a cartel.
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.
There are currently no comments on this article
Be the first to comment on this article