Dive Summary:
- On Friday, the U.S. Department of Justice announced the approval of merger between Anheuser-Busch (AB) InBev and Grupo Modelo after settling an anti-competitiveness lawsuit.
- The settlement will require AB InBev to sell all of Modelo's U.S. brands and brewery in Piedras Negras, Mexico to Constellation Brands.
From the article:
"... The U.S. has been reviewing Constellation’s plan to boost brewing capacity at the Piedras Negras plant by about 70 percent to ensure that Modelo-brand products remain viable competitors in the U.S. beer market, two people familiar with the matter said March 8.
Under the revised deal, AB InBev, which is based in Leuven, Belgium, also gave up an option to buy back a stake in Crown Imports LLC, the U.S. distributor of Corona and the other Modelo (GMODELOC) brands. As part of the plan, Crown, owned jointly by Mexico City-based Modelo and Victor, New York-based Constellation, would be entirely owned by Constellation. ..."