NEWS ALERT: U.S. Department of Justice Reaches Final Accord With ABI, Clearing Way For Modelo AcquisitionApril 19, 2013
Anheuser-Busch InBev NV and the U.S. Justice Department have reached a final agreement on ABI’s acquisition of the half of Mexico’s 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 those revised terms, ABI will sell perpetual rights to the Modelo portfolio in the U.S. 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.
Mexican regulatory authorities have already signed off on the revised transaction, which is expected to close in June 2013.