AB InBev revises Modelo deal to clear U.S. objections
AB InBev revises Modelo deal to clear U.S. objections
Feb 14, 2013 6
(Reuters) - Anheuser-Busch InBev (ABI.BR), the world's largest brewer, has revised the terms of its $20.1 billion takeover of Mexican brewer Grupo Modelo (GMODELOC.MX) to overcome U.S. government objections that it would have restricted competition.
The U.S. Department of Justice (DOJ) filed a lawsuit to block the deal on the grounds that it removed an independent competitor and could have led to higher U.S. beer prices.
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.N) 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.
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