US: Court agrees to Anheuser Busch InBev's Modelo deal concessions
By James Wilmore | 22 April 2013
 |
A-B InBev is getting closer to taking control of Modelo |
The anti-trust lawsuit filed over Anheuser-Busch InBev's US$20.1bn buy-out of Grupo Modelo has been fully laid to rest after a court allowed the settlement between the companies and the US Department of Justice (DoJ).
A-B InBev said today (22 April) that the court where the lawsuit was due to be heard has signed the agreement between the groups and the DoJ. The companies announced on Friday details of the settlement with the DoJ, three months after the lawsuit was launched.
A-B InBev said it expects the transaction to complete in June.
The deal will also see Constellation Brands buy out Modelo's share in their Crown Imports US sales and distribution JV. Constellation will 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 concessions were agreed in February as a result of the DoJ's anti-trust concerns.
However, A-B InBev's move for Modelo is still facing a separate lawsuit filed last month by nine individuals seeking to block the move. The complaint claims that the deal would impact consumers through higher prices, “elimination of quality, curtailment of innovation, and destruction of consumer choice”.
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: InBev, Modelo, Constellation
View next/previous articles
22 Apr 2013 -
22 Apr 2013 -
Currently reading -
US: Court agrees to Anheuser Busch InBev's Modelo deal concessions
22 Apr 2013 -
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
GERMANY: Anheuser-Busch InBev cutting 151 jobs at Bremen site
Anheuser-Busch InBev is planning to cut around 10% of the workforce at its biggest production plant in Germany as it battles with the country's declining beer market.
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