DOJ has no love for Bud, Corona

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The U.S. Department of Justice is building a case to block the merger of Anheuser-Busch InBev with Mexico's Grupo Modelo.  Officials told CNN on Thursday this is "a bad deal for American consumers."

Even with the DOJ stepping in, parties involved are not giving up.  A spokesperson from Constellation Brands, Grupo Modelo's parent company, has provided a statement "Given today’s development, we no longer expect the deal to close during the first calendar quarter of 2013 but we ultimately look forward to an expeditious resolution". Conversely, in regards to Anheuser-Busch InBev merging with Grupo Modelo, the DOJ is accusing ABI of trying to eliminate "a significant competitive threat." If consolidated, ABI would control about 46% of the beer market in North America.

On news of the developing story, AB-InBev's stocks dropped 6%.  The hit was much harder for Constellation with their shares falling 19%.  Since the news of the merger last year, Constellation's stocks rose from $20 a share to more than $30.

Tags: Source: Washington Post
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