Anheuser-Busch InBev closer to settlement in Modelo deal

Anheuser-Busch InBev has reached a tentative agreement with the Department of Justice over its disputed $20.1 billion acquisition of Mexican brewer Grupo Modelo.

The world’s largest brewer has been trying since June to buy the half of Grupo Modelo that it doesn’t already own. The Justice Department sued to block the deal on concerns that it would stifle competition in the U.S.

In an effort to appease regulators, AB InBev subsequently struck a side deal that gives control of the production of Corona and other Modelo beers sold in the U.S. to smaller competitor Constellation Brands Inc.

The companies involved in the complicated series of deals have since been in talks with the Department of Justice about a possible resolution.

AB InBev, Grupo Modelo and Constellation said Friday that the proposed resolution is in line with the revised deal.

The companies and the Department of Justice are asking the court to extend a stay of proceedings until April 23 to finalize the details necessary for a settlement.

The Department of Justice, in confirming the agreement in principle Friday, reiterated that any settlement would have to fully protect U.S. consumers by preserving the competition that Grupo Modelo currently provides, while giving a buyer of the divestiture the freedom and capability to compete vigorously in the future.

U.S.-traded shares of AB InBev fell $1.95 to close at $97.60 and slipped another 4 cents in after-hours trading. Constellation Brand shares jumped nearly 3 percent to $49.18 after hours on the news.

More in Herald Business Journal

Stocks tumble on trade fears; SP has worst week in 2 years

A trade war could damage the global economy and slash profits at big U.S. exporters like Boeing.

Somers sees Paine Field as focal point of a thriving county

In an annual speech, he also acknowledged challenges such as opioid addiction, crime and homelessness.

Housing boom in Puget Sound region missing crucial element: Condos

Developers are only building high-end condos where there’s enough margins to cover potential litigation.

Costco is considering building store in Lake Stevens

The Issaquah-based chain is doing due diligence on the property, which is mostly owned by the city.

Will thousands of new apartments in Snohomish County mean lower rents?

Experts debate the meaning of a recent price drop, one of the biggest decreases in more than a decade.

Toys R Us liquidation sale: Here’s what you need to know

Customers with items on layaway will have 21 days to pay the remaining amount or ask for a refund.

This book shows us the value of a questioning mind

“Ten Great Ideas About Chance” contains not only ideas but questions that prompted their discovery.

United gives $10,000 travel voucher to ‘bumped’ passenger

But the airline drew the line at letting her into one of its airport lounges.

Can Zuckerberg’s media blitz take the pressure off Facebook?

The generally reclusive CEO sat for an interview on CNN and gave another to the publication Wired.

Most Read