Belgian brewer Anheuser-Busch InBev NV/SA (BUD,AHBIF.PK) announced Sunday that it along with Mexican peer Grupo Modelo S.A.B. de C.V. (GPMCY), Constellation Brands Inc. (STZ) and Crown Imports LLC have reached an agreement in principle with the U.S. Department of Justice to resolve a litigation challenging AB InBev's proposed acquisition of the remaining stake in Grupo Modelo that it does not already own.
However, the parties have approached the court and requested an extension of the stay of the proceedings until April 23, 2013 in order to thrash out final details of the settlement. The parties had already requested a stay of all litigation proceedings until March 19, 2013, and have stated now that they expect for this to be their final request to extend the stay.
The settlement is almost in line with the revised deal announced on February 14, that will primarily see AB InBev divest Compania Cervecera de Coahuila, Modelo's state-of-the-art brewery in Piedras Negras, Mexico, and grant perpetual brand licenses to Constellation Brands for $2.9 billion. The companies have also agreed for a three-year transition services deal to ensure the smooth transition of the operation.
In late January, the DoJ filed a civil antitrust lawsuit to block AB InBev's proposed $20.1 billion deal to acquire total ownership and control of Mexican brewer Modelo, claiming the deal would result in less competition and higher beer prices for American consumers.
The DoJ said the deal would substantially reduce competition in the U.S. beer market as a whole and in 26 metropolitan areas across the country, resulting in consumers paying more for beer and having fewer new products from which to choose.
AB InBev's Bud Light is the best selling beer in the U.S. and Modelo's Corona Extra is the best-selling import. AB InBev and Modelo, the largest and third largest beer firms, respectively, together control about 46 percent of annual sales in the U.S.
The deal is the biggest that the DoJ has challenged since 2011, when it sued to block AT&T, Inc.'s (T) proposed $39 billion takeover of T-Mobile USA.
AB InBev agreed in late June 2012 to acquire the remaining stake in Modelo by paying the Corona beer maker $9.15 per share in cash or about $20.1 billion. AB InBev, the world's largest brewer, acquired a 50 percent stake in Modelo through InBev's 2008 purchase of Anheuser-Busch for $52 billion.
As part of the proposed deal, Modelo also agreed to sell its existing 50 percent stake in Crown Imports to Constellation for $1.85 billion. Crown Imports is Modelo's joint venture with Constellation that imports and markets Modelo's brands in the U.S.
European brewers have been focusing on acquisitions to expand in overseas markets as the economic crisis, austerity measures and unemployment rates have retarded growth domestically.
In April 2012, AB InBev agreed to buy Cerveceria Nacional Dominicana for $2.5 billion. SAB Miller Plc. (SAB) bought in 2011 Australia's Foster's for around $10 billion. In 2010, Heineken N.V. bought Mexico's Femsa Cerveza for around $7 billion.
Modelo, founded in 1925, is Mexico's biggest beer brewer and the world's sixth largest, with a total annual installed capacity of 70 million hectoliters. The company's export brands include Corona Light, Negra Modelo, Pacífico and Victoria. Modelo is the importer of AB InBev's products in Mexico, including Budweiser, Bud Light and O'Doul's.
BUD closed Friday's regular trading session at $97.60, down $1.95 or 1.96% on a volume of 1.32 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.