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Thursday, February 14, 2013

AB InBev revises Modelo beer deal to clear US objections, (NYSE: BUD), (NYSE: STZ)

Anheuser-Busch InBev, the world's largest brewer, has revised the terms of its $20.1 billion takeover of Mexican brewer Grupo Modelo 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 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 purchase 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.

Anheuser Busch Inbev SA is a brewing company. The Company produces, markets, distributes and sells a balanced portfolio of approximately 200 beer brands. Shares of BUD traded higher by 5.28% or $4.6601/share to $92.92. In the past year, the shares have traded as low as $64.48 and as high as $94.49. On average, 1330040 shares of BUD exchange hands on a given day and today's volume is recorded at 4292613.

Constellation Brands, Inc. is a wine company. The Company is a marketer of imported beer in the United States. Shares of STZ traded higher by 36.98% or $11.79/share to $43.67. In the past year, the shares have traded as low as $18.50 and as high as $39.65. On average, 3138060 shares of STZ exchange hands on a given day and today's volume is recorded at 40123136.



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