Judge approves stay in AB InBev-Modelo proceedings




A judge has approved a stay in court proceedings in the U.S. Justice Department’s suit against Anheuser-Busch InBev to give the parties more time to reach an agreement over AB InBev’s effort to buy the 50% of Grupo Modelo it doesn’t already own,

Reuters reported.

The federal government had filed suit on Jan. 31 to halt the $20.1 billion deal, saying it could mean higher U.S. beer prices. AB InBev first offered to sell its 50% stake in Crown Imports, Modelo’s U.S. distributor, to Constellation Brands. In February, it said it would also sell Modelo’s brewery in Mexico near the U.S. border to Constellation and would grant Constellation U.S. rights to Modelo brands, the Reuters article said.

The revised offer would make Constellation the third-largest U.S. beer producer, the Reuters report noted. (Source: Reuters, April 9, 2013.)

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