Investing

Grupo Modelo Buyout Not Yet off the Table

Anheuser-Busch InBev N.V. (NYSE: BUD) may yet buy Mexican brewer Grupo Modelo, despite early resistance from the U.S. Department of Justice. To close a transaction, the larger company probably will offer terms that DOJ will find more palatable.

According to Reuters:

The DOJ was not convinced that AB InBev’s related plan to sell its 50 percent share of U.S. beer importer Crown Imports to the world’s largest wine company Constellation Brands (STZ) would have remedied that defect, since AB InBev would still have supplied Crown with Corona and other Modelo beers and had the option every 10 years to buy the whole of Crown.

AB InBev said on Thursday it had now agreed to sell Modelo’s Piedras Negras brewery next to the U.S. border to Constellation and grant it perpetual rights for Corona and other Modelo brands in the United States, at a cost of $2.9 billion.

The U.S. beer market is currently dominated by AB InBev and MillerCoors, a joint venture between SABMiller (SAB.L) and Molson Coors Brewing Co with a 30 percent share.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.