US Stops Budweiser, Corona From Joining Forces, Becoming Beer Behemoth

The Justice Department has filed a suit to block Anheuser-Busch InBev from buying Grupo Modelo


We always knew that Anheuser-Busch InBev had a monopoly when it came to booze (we mean, it owns Budweiser... which sponsors the Super Bowl... ), but it turns out that InBev has some bigger plans.

Apparently, InBev was planning on closing on a cash deal to buy Grupo Modelo, the company behind Corona Extra, Modelo Especial, and Pacifico.

Currently, InBev owns 50 percent of noncontrolling stake in Modelo, the DOJ reports, which it inherited when it bought out Budweiser in 2008. It has a 42 percent voting interest in Modelo, and no operational control.

The DOJ, however, claims that the $20.1 billion deal would give InBev the power to change the market, as the deal would give InBev the rest of the Modelo stake. Ultimately, the DOJ suggests, InBev and Modelo merging "would result in less competition and higher beer prices for American consumers."

Naturally, InBev and Modelo intend to contest the DOJ's lawsuit, saying that Bud Light and Corona Extra would remain separate, as another company, Constellation Brands, would control the import and sale of Corona Extra. InBev and Modelo collectively control 46 percent of annual beer sales, however, meaning that if they do somehow finagle a pricing partnership, cheap beer drinkers everywhere might just be screwed.


Be a Part of the Conversation

Have something to say?
Add a comment (or see what others think).

Comments 0


Like this story? Get updates by email, facebook and twitter
Get daily food and wine coverage


Latest from The Daily Meal

The Daily Meal Video Network
A Lesson in Limoncello

Post a comment

Add a Comment

Upload a picture of yourself no larger than 3MB, please see Terms for details
CAPTCHA
Please answer this Captcha to prove you are human
Image CAPTCHA
Enter the characters shown in the image.
CAPTCHA
Please answer this Captcha to prove you are human