The Court signed the stipulation that resolves the Department of Justice’s challenge to AB InBev’s proposed acquisition of the remaining shares of Grupo Modelo that it does not already own. AB InBev expects to complete the transaction in June 2013.
The Court signed the previously announced stipulation and order between AnheuserBusch InBev, Grupo Modelo, S.A.B. de C.V., Constellation Brands Inc. and the Department of Justice that resolves the Department of Justice’s challenge to AB InBev’s proposed acquisition of the remaining shares of Grupo Modelo that it does not already own.
AB InBev expects to complete the transaction in June. Check out the full press release.
The stipulation was first announced earlier this month. Before that, there were a flurry of events leading up to the lawsuit. Here’s the recap:
- Last year, AB InBev announced it was looking to buy the 50 percent of Grupo Modelo that it didn’t already own.
- In January, the U.S. government filed a lawsuit to block the merger of these two giant beer companies, saying the deal would limit competition, lead to higher prices for American consumers and give AB InBev 46 percent of the domestic market.
- In February, AB InBev comes up with a solution. The company points to Grupo Modelo and its joint venture with Constellation Brands (a Fortune 1000 company that is a world leader in premium wine). The joint venture is called Crown Imports LLC, and it allows Constellation to distribute and market Grupo Modelo’s beer brands in America, including Corona Extra, the No. 1 imported beer in America. To avoid antitrust concerns, Grupo Modelo has agreed to sell its half of the joint venture to Constellation Brands. Constellation would pay $1.8 billion to take complete ownership of Crown Imports, and AB InBev agreed to give up its option to buy the rights to distribute Grupo Modelo brands in the United States.
