A PYMNTS Company

Halting Beer’s March to Monopoly: The Likely Anticompetitive Effects of Anheuser-Busch InBev’s Proposed Acquisition of Grupo Modelo

By  |  January 26, 2015

Posted by Social Science Research Network

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    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”).