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Investing

Anheuser-Busch Buys Grupo Modelo

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By Douglas A. McIntyre Published
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The world’s largest brewer just got much larger. Anheuser-Busch InBev (NYSE: BUD) will buy the half of Grupo Modelo is does not already own. The price is $20.1 billion. Grupo Modelo is based in Mexico, and by some measures has most of the market for beer in that country. It also exports several products that are popular in the United States, such as Corona.

While the deal picks up more revenue for Anheuser-Busch, it probably does not have the economies of scale that many buyouts have. Grupo Modelo’s operations are in Mexico, far from most of Anheuser-Busch’s operations in the U.S. and Europe. And the markets for Budweiser and Corona may have little in common, which means advertising budgets will remain intact.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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