Anheuser-busch Inbev to buy out Grupo Modelo
Anheuser-Busch InBev agreed to buy the half of Corona maker Grupo Modelo it doesn’t already own for $20.1 billion in cash in a deal that will greatly increase the size and dominance of the world’s largest brewer.
The acquisition would bring under one company many of the world’s bestknown beer brands — Corona, Modelo and Pacifico would join AB InBev’s Budweiser, Beck’s and Stella Artois, among others.
The combined company would have annual sales of $47 billion and employ 150,000 workers in 24 countries.
AB InBev, based in Leuven, Belgium, said in a statement Friday that it had agreed with Modelo’s management to pay $9.15 a share for the company, a 30% premium to the Mexican company’s share price just before news of a possible deal came out June 22.
The companies said the agreement was a “natural step” in light of AB InBev’s current stake in Modelo.
“Grupo Modelo has been one of our most important partners for more than 20 years, and we are very pleased to evolve our long and successful relationship into this combination,” said AB InBev Chief Executive Carlos Brito. “There is tremendous opportunity from combining two leading brand portfolios and further expanding Grupo Modelo’s brands worldwide through AB InBev’s extensive global distribution network.”
Analysts said AB InBev appears to have paid highly for Modelo, but the deal makes strategic sense.
“This is likely to lead to higher margins for Modelo,” said SNS Securities analyst Richard Withagen in a note. He said AB InBev would move rapidly to introduce more of its brands into the Mexican market.