The US DOJ sues to block merger between two leading brewers (AB InBev / Grupo Modelo)

The Department of Justice ("DOJ") has filed a civil antitrust lawsuit challenging the $20 billion proposed acquisition by Anheuser-Bush InBev ("ABI") of the remaining 50 percent interest in Grupo Modelo S.A.B. de C.V. ("Modelo"), the producer of Corona Extra, the best-selling imported beer in the United States. The lawsuit alleges that the transaction would not only eliminate head-to-head competition, resulting in increased prices and less innovation, but also would remove Modelo as a disruptive pricing influence in the overall marketplace. The DOJ rejected ABI's attempt to resolve the DOJ's concerns through a voluntary supply agreement, which would have allowed Modelo's existing joint venture partner in the U.S., Constellation, to gain exclusive control over the import of Modelo beer

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

  • Jones Day (Washington DC)

Quotation

Peter J. Love, The US DOJ sues to block merger between two leading brewers (AB InBev / Grupo Modelo), 31 January 2013, e-Competitions January 2013, Art. N° 50887

Visites 148

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues