Halting Beer’s March to Monopoly: The Likely Anticompetitive Effects of Anheuser-Busch InBev’s Proposed Acquisition of Grupo Modelo
Posted by Social Science Research Network
Halting Beer’s March to Monopoly: The Likely Anticompetitive Effects of Anheuser-Busch InBev’s Proposed Acquisition of Grupo Modelo– Sandeep Vaheesan (American Antitrust Institute)
Abstract: In late June, Anheuser-Busch InBev (ABInBev), the world’s largest beer maker, announced its intention to acquire the remaining 50 percent interest in Grupo Modelo (Modelo), Mexico’s largest brewer, that it does not currently own (hereafter “the proposed acquisition”). ABInBev’s products include popular brands like Budweiser, Bud Light, Beck’s, and Stella Artois. Likewise, Modelo produces a number of well-known brands, including Corona Extra (Corona) and Modelo Especial. As part of the proposed acquisition, Modelo will sell its 50 percent interest in Crown Imports, the exclusive U.S. importer of Corona and other Modelo brands, to Constellation Brands, which currently owns the other 50 percent. Crown Imports will continue to be supplied with Corona and other Modelo brands from ABInBev (hereafter collectively “the proposed transactions”).
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