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.
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.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.