WASHINGTON – The U.S. Justice Department has filed a lawsuit seeking to stop Anheuser-Busch InBev SA from buying the half of Mexican brewer Grupo Modelo that it does not already own, saying the US$20.1-billion deal would lessen competition in the U.S. beer market.
Trading in Constellation Brands, which would have become sole owner of the company that distributes Modelo’s Corona beer in the United States if the transaction had been approved, was halted after it dropped 23.8%.
By Dutch Trader: In my March article "Anheuser-Bush Inbev: Strong Results and A Great Buy" I already was quite positive about the company. Back in March the stock was trading around $68. Right now the stock is trading around $80. Time to wait?
Though Anheuser-Busch InBev may have failed in its Worst Company In America battle against Electronic Arts, the beer behemoth is getting much closer to owning even more big-name beer brands, saying it has reached an agreement in principle with the Dept. of Justice that would allow it to acquire the rest of Mexico’s Grupo Modelo.
By Zvi Bar:On January 31, the U.S. Department of Justice filed a lawsuit to block the proposed $20.1 billion purchase of Grupo Modelo (GPMCY.PK) by Anheuser-Busch InBev (BUD), claiming that the deal would hurt competition and raise prices.
By Chris Katje: Shares of Constellation Brands (STZ) were sent rallying Monday as Anheuser-Busch InBev (BUD) is close to acquiring the reaming portion of Grupo Modelo it doesn't already own. The price tag is rumored to be $12-$20 billion for the remaining 50% that Anheuser Busch doesn't own.