Brewing giant Anheuser-Busch InBev plans to buy the remaining interest in Grupo Modelo S.A.B. de C.V. it doesn't own in a deal valued at $20.1 billion.


Anheuser-Busch InBev, Grupo Modelo, beer brands, Corona, Budweiser, Stella Artois, Beck's, Carlos Brito, Carlos Fernandez, AB InBev, Constellation Brands, Crown Imports, beer




























































































































































































































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Anheuser-Busch InBev to acquire rest of Grupo Modelo

June 29th, 2012

BRUSSELS and MEXICO CITY – Brewing giant Anheuser-Busch InBev plans to buy the remaining interest in Grupo Modelo S.A.B. de C.V. it doesn't own in a deal valued at $20.1 billion.

The companies said Friday that the transaction, expected to close in the first quarter of 2013, will bring together Corona and Budweiser beer as global flagship brands, also joining the global beer brands Stella Artois and Beck's.

AB InBev's existing stake in Grupo Modelo was over 50%. The combined company would lead the global beer industry with roughly 400 million hectoliters of beer volume annually and 2012 estimated revenue of $47 billion. Its operations would span 24 nations and encompass 150,000 employees worldwide.

"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," stated Carlos Brito, chief executive officer of Anheuser-Busch InBev. "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. Our admiration for Grupo Modelo's business and brands has only increased with time, and we look forward to joining our historic and world-class breweries."

Accord to AB InBev and Grupo Modelo, the merged company unites five of the top six and seven of the top 10 most-valuable beer brands in the world, each with distinct brand imagery and consumer positioning. The deal also brings together Grupo Modelo's No. 1 position in the world's fourth-largest profit pool with AB InBev's leading global position, further increasing AB InBev's exposure to fast-growing developing markets.

"We have worked together with Anheuser-Busch InBev in a productive decades-long partnership, and it is time to cement our relationship through this merger," commented Carlos Fernandez, chairman and CEO of Grupo Modelo. "Together, we will be the leading global brewer with top brands around the world and positions in some of the fastest-growing countries. This is an exciting transaction that will bring our brands and proud heritage to even more consumers internationally while offering an increasing number of AB InBev's brands in Mexico."

Under the agreement, Grupo Modelo's name, identity, heritage and headquarters in Mexico City will remain, and the company will continue to have a local board. Carlos Fernandez, Maria Asuncion Aramburuzabala and Valentin Diez Morodo will continue to play an important role on Grupo Modelo's board, and AB InBev will seek the board's insights and expertise, the companies said. Two Grupo Modelo board members will join AB InBev's board.

And in a related transaction announced Friday, Grupo Modelo plans to sell its 50% stake in Crown Imports, the joint venture that imports and markets Grupo Modelo's brands in the United States, to Constellation Brands for $1.85 billion, giving Constellation Brands 100% ownership and control. As a result, Grupo Modelo's brands will continue to be imported, marketed and distributed independently in the United States through Crown Imports.

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