Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

US sues to block $20 bn AB InBev takeover of Modelo  Join our daily free Newsletter

MENAFN - AFP - 31/01/2013

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - AFP) US antitrust authorities sued Thursday to block the 20.1 billion takeover of Mexican brewer Grupo Modelo by Belgian-US giant Anheuser-Busch InBev, saying the combined firm would have too much power over the US beer market.The move put on hold the takeover announced last June that would give the combined company, with brands like Budweiser, Stella Artois and Corona, a 46 percent hold on the US market, according to the Justice Department, and a bigger lock on Mexico's.The US Justice Department said the suit "seeks to prevent the companies from merging and to preserve the existing head-to-head competition between the firms that the transaction would eliminate.""If ABI fully owned and controlled Modelo, ABI would be able to increase beer prices to American consumers," said Bill Baer, the assistant attorney general who heads the Justice Department's anti-trust division."This lawsuit seeks to prevent ABI from eliminating Modelo as an important competitive force in the beer industry."The proposed merger quickly raised worries over consolidation in the beer market when it was announced last June.ABI aleady holds 50 percent of Modelo in a non-controlling stake and proposed to purchase the rest in the cash deal.Part of the cost would be covered by ABI selling to US group Constellation Brands its half of the capital of the US importer of Corona, Crown Imports, for 1.85 billion.Constellation Brands already owns half of the importing firm.But that deal, too, is now on hold because of the Justice Department lawsuit.ABI shares fell 6.7 percent on the Nasdaq after the news, while Constellation plunged 18.5 percent.In Mexico, Modelo shares sank 7.5 percent.In a statement, ABI criticized the suit as "inconsistent with the law, the facts and the reality of the market place."e"We remain confident in our position, and we intend to vigorously contest the DOJ's action in federal court. Given today's development, we no longer expect the deal to close during the first quarter of 2013."

 






  MENA News Headlines


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help