ABI, Justice Department Agree In Principle On Modelo DealApril 8, 2013
Anheuser-Busch InBev (ABI) has reached agreement in principle with the U.S. Justice Department (DOJ) to proceed with its $20 billion acquisition of the half of Grupo Modelo it doesn’t already own. The terms of the agreement are “substantially in line” with the revised proposal set out by ABI on February 14, after the DOJ sued to block the original acquisition play over antitrust concerns.
Under the revised transaction of February 14, ABI will sell perpetual rights to the Modelo portfolio and the Piedras Negras brewery where Modelo brands are produced for the U.S. market to Constellation Brands for $2.9 billion. As originally agreed upon, Constellation will pay $1.85 billion to ABI to acquire the 50% of Crown Imports, Modelo’s U.S. marketer, that it doesn’t already own. The parties expect to have a final agreement in place by April 23, but noted that the revised transaction still requires antitrust approval in Mexico.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.