Retail
Grupo Modelo May Not Move The Needle For Anheuser-Busch InBev
Published:
Last Updated:
Anheuser-Busch InBev SA/NV (NYSE: BUD) is bucking the broad market’s sell-off today on word that it is in talks to acquire the remaining stake of Mexican beer giant Grupo Modelo. The shares were briefly halted for the company to address the speculation, but the reaction so far may be a bit disappointing.
Anheuser-Busch InBev simply noted that it routinely considers a variety of strategic options to create value for its shareholders and that there have been discussions between the company and Grupo Modelo over a possible transaction to expand its current relationship. AB, or Bud, further said that these discussions may or may not lead to a transaction and any speculation on terms and conditions is premature as there has been a long history of partnership between these two players.
In short, “We are talking but we won’t tell you anything further.” If this was really great news we would expect more of a reaction to the upside even if the small gain was on a down day for the market. The rumor of the size was $10 billion to $12 billion, and Bud’s market cap is over $112 billion according to Yahoo! Finance. Grupo Modelo brands include Corona, Modelo, Negra Modelo, Tropical, Pacifico and others. It also has water brands as well under Gerber, Nestle, Perrier, Pellegrino and others.
It is sad when a $10 billion or $12 billion deal does not even scratch the surface. Anheuser-Busch InBev shares are up almost 1% at $70.97 and the 52-week range is $49.05 to $75.08.
JON C. OGG
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.