Anheuser-Busch InBev Pronounces Progress in DOJ Suit

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Citing significant progress made in joint talks over its proposed acquisition of Grupo Modelo, brewing giant Anheuser-Busch InBev (NYSE: BUD  ) said all the parties, including the Justice Department, jointly asked the court to extend a stay due to expire March 19, as they will probably complete their negotiations.

Anheuser-Busch, which is trying to acquire the remaining 50% stake in the Mexican brewer it doesn't already own for $20.1 billion, originally agreed to sell Modelo's existing 50% interest in Crown Imports to co-owner Constellation Brands (NYSE: STZ  ) , but the FTC objected because of antitrust and anti-competitiveness concerns.

AB InBev subsequently modified the proposal and agreed to sell Compania Cervecera de CoahuilaGrupo Modelo's brewery in Piedras Negras, Mexico, and grant perpetual brand licenses to Constellation for $2.9 billion. Modelo's U.S. business would be completely divested to ensure independence of supply for Crown Imports. It would also provide Constellation with complete control of the production of the Modelo brands for marketing and distribution in the United States.

AB, Grupo Modelo, Constellation, Crown, and Justice have been in discussions to resolve the antitrust concerns. They requested that the court extend the stay until April 9. If the parties reach an agreement, they will file a proposed consent judgment and related documentation with the court, though Anheuser-Busch InBev offers a reminder that it cannot guarantee the discussions will be successful. 

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2319390, ~/Articles/ArticleHandler.aspx, 9/26/2016 8:48:43 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:02 PM
BUD $132.20 Up +2.04 +1.57%
Anheuser-Busch InB… CAPS Rating: ****
STZ $165.58 Down -1.05 -0.63%
Constellation Bran… CAPS Rating: ****