The US DoJ reaches a flexible settlement in crafting structural remedies in a merger between two leading brewers (AB InBev / Grupo Modelo)

The U.S. Department of Justice ("DOJ") has reached a settlement with Anheuser-Busch InBev ("ABI") and Grupo Modelo S.A.B. de C.V. ("Modelo"), requiring ABI to divest Modelo’s entire U.S. business to Constellation Brands Inc. ("Constellation"). The consent decree provides for a straightforward structural fix. ABI has agreed to sell Modelo’s newest Piedras Negras brewery and Modelo’s interest in Crown, its U.S. distribution joint venture with Constellation. ABI also will sell to Constellation (or to some other divestiture buyer if the deal with Constellation falls through) perpetual and exclusive licenses to the Modelo brands for distribution and sale in the United States. Coming after DOJ's rejection of a softer remedy proposed by ABI, the final settlement reflects DOJ’s continued reliance