You are here
A-B InBev already owns more than a 50-percent stake in the Mexican-based brewer of Corona, Modelo and Pacifico beers.
According to an A-B InBev news release, the acquisition was a "natural next step." The combined company will have operations in 24 countries, 150,000 employees and 2012 estimated revenues of $47 billion.
"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 Carlos Brito, CEO of A-B InBev. "There is tremendous opportunity to form two leading brand portfolios and further expand Grupo Modelo's brands worldwide through A-B 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."
As part of the deal, A-B InBev also announced that Grupo Modelo would sell its 50-percent stake in Crown Imports LLC to Constellation Brands.
In addition, Corona will join Budweiser as an A-B InBev global flagship brand and Grupo Modelo's name and Mexico City headquarters will stay intact.
A-B InBev paid a 30-percent premium for the remaining stake in Grupo Modelo, compared to the latter's series C closing stock price on June 22.
In addition to Budweiser, A-B InBev is known for Beck's, Stella Artois and many other brands.
"We have worked together with Anheuser-Busch InBev in a productive, decade-long partnership, and it is time to cement our relationship through this merger," said Carlos Fernández, 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 A-B InBev brands in Mexico."