AB InBev modifies Modelo deal14th February, 2013 by Rupert Millar
Brewing giant AB InBev has modified the terms of its takeover deal of Grupo Modelo to appease the US government.
It was announced last year that the brewer had acquired the Mexican group for just over US$20 billion.
However the US government raised objections to the deal saying it would restrict competition.
The Department of Justice filed a lawsuit blocking the deal on the grounds that it, “removed an independent competitor and could have led to higher US beer prices,” said Reuters.
The department was apparently unimpressed by AB InBev’s plan to sell 50% of its importer Crown Imports to Constellation Brands.
The modifications, AB InBev announced today (14 February), include the sale of Modelo’s Piedra Negras brewery to Constellation as well as granting the wine company the perpetual rights to Corona and other Modelo brands in the US at a cost of $2.9bn.