Dive Summary:
- After announcing a proposed acquisition of Grupo Modelo for $20 billion, AB InBev was hit with a lawsuit from the Department of Justice claiming the company would then have a monopoly on U.S. beer.
- Company lawyers have since fired back, claiming the lawsuit is completely unfounded and have begun preparing themselves for what's sure to be a lengthy legal bout.
- The company had hoped to have the deal brokered by Q1 2013, however company representatives were optimistic that it would close sometime this year.
From the article:
Bill Baer, assistant attorney general in charge of the DOJ’s antitrust division said that the department had taken action to “prevent AB InBev from eliminating Modelo as an important competitive force in the beer industry”.
“If AB InBev fully owned and controlled Modelo, AB InBev would be able to increase beer prices to American consumers,” Baer added.
The DOJ bombshell led AB InBev to rush out a statement attacking the department for its suit, which the Belgian-based brewer said was, “inconsistent with the law, the facts and the reality of the marketplace”.
