Dive Summary:
- AB InBev was hit with a class action lawsuit claiming their deal with Grupo Modelo would be bad for consumers by monopolizing the beer market.
- The buyout is estimated to be worth more than $20 billion, however the company said this latest lawsuit may delay or even end any hopes in moving forward.
- Despite this, however, the company maintained that it would defend itself and the proposed deal vigorously in court and in the media.
From the article:
BeverageDaily.com has seen a copy of the complaint, whereby nine disgruntled consumers bring a class action on behalf of all US beer consumers that seeks to stop AB InBev acquiring the Grupo Modelo shares it does not already own.
Edstrom et al. argue that the $20.1bn deal, inked on June 28 2012, would end aggressive competition that had led to lower US beer prices and innovation, enhance AB’s market power and “facilitate coordinated pricing
between AB InBev and the next largest brewer, MillerCoors”. ...