Anheuser-Busch InBev and the U.S. Justice Department have reached an agreement in principle on AB InBev’s acquisition of Grupo Modelo,
Reuters reported.
The parties asked a court to extend a stay in their legal battle until April 23.
The Justice Department filed suit on Jan. 31to stop AB InBev from buying the half of Modelo it doesn’t own for $20.1 billion, contenting that the deal could mean higher beer prices in the U.S., the Reuters report noted.
AB InBev first said it would sell its 50% stake in Modelo’s U.S. distributor, Crown Imports, to Constellation Brands. The Justice Department’s Antitrust Division sued to stop the deal, arguing that the company’s U.S. market share was so large that it would raise prices. In February, AB InBev said it would sell Modelo’s brewery near the U.S.-Mexico border to Constellation for $2.9 billion and that it would grant Constellation perpetual rights to Modelo brands in the U.S., the Reuters article said.
AB InBev said the agreement in principle is “substantially in line” with the February proposal, the Reuters report said. (Source: Reuters, April 5, 2013.)
-
595 reads