A-B’s $20.1 billion merger survives antitrust court

While it looks to withstand a class action lawsuit that claims it had watered down its beers, Anheuser-Busch expects to complete a move that could put the beverage giant in a formidable position as it continues to increase its hold on the market.

Late last week, reports emerged that the latest hurdle to the merger between Anheuser-Busch and Modelo, which produces beers such as Corona, has been cleared. The roadblock that emerged for the estimated $20.1 billion deal was an antitrust lawsuit put forth by the Obama administration, claiming that, should the merger be completed, Anheuser-Busch would have too powerful a claim on the American beer industry. However, on Friday, Anheuser-Busch had agreed "in principle" to terms that would settle the lawsuit and let the merger reach completion.

While Anheuser-Busch did not disclose the terms of the antitrust agreement, reports have emerged saying that the company has agreed to a deal that would involve selling off some of its other assets in order to complete a 100 percent ownership takeover of Modelo, which is currently 50 percent owned by Anheuser-Busch. The Budweiser parent company has reportedly offered to sell 50 percent of its stake in Crown Imports, which imports products such as Corona into the U.S., to Constellation Brands for $2.9 billion. Constellation currently owns 50 percent of Crown Imports, alongside Modelo.

Additionally, Anheuser​-Busch has agreed to sell the rights to Corona and other Modelo brands to Constellation. These moves, which were made in order to avoid a complete stoppage of the merger, back Anheuser-Busch's publicly stated stance that the deal was vital to the company's growth.

When participating in any sort of business dealings that involve a shift in ownership, it's important for seek out small business legal advice. For local companies, the best option is to contact a Phoenix small business attorney.

Categorised in: Business Law

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