AB InBev Buys Out Corona Maker Modelo for $20 Billion
The company hopes the deal will result in Corona joining Budweiser as a global flagship brand. Grupo Modelo is the market leader in Mexico, a highly attractive growth market for AB InBev. The combined company would lead the global beer industry with roughly 400 million hectoliters of beer volume annually and 2012 estimated revenues of $47 billion. Its operations would span 24 countries with enhanced opportunities for 150,000 employees across the globe.
29 Jun 2012 --- Anheuser-Busch InBev, the world's biggest brewer, confirmed rumors it would purchase the half of Grupo Modelo it does not already own for $20.1 billion.
The company hopes the deal will result in Corona joining Budweiser as a global flagship brand. Grupo Modelo is the market leader in Mexico, a highly attractive growth market for AB InBev.
Grupo Modelo’s name and headquarters in Mexico City are to remain; the combination of the companies is expected to yield annual synergies of at Least $600 Million.Grupo Modelo to sell its 50% stake in Crown Imports LLC to Constellation Brands to prevent anti-trust concerns.
The agreement is a natural next step given AB InBev’s existing economic stake of more than 50% in Grupo Modelo and the successful long-term partnership between the two companies.
The combined company would lead the global beer industry with roughly 400 million hectoliters of beer volume annually and 2012 estimated revenues of $47 billion. Its operations would span 24 countries with enhanced opportunities for 150,000 employees across the globe.
“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, 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. We also recognize and appreciate the critical role that Grupo Modelo’s shareholders and management have played in the Brussels and Mexico City company’s longstanding success within Mexico and internationally and look forward to their continued contributions.”
“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,” said Carlos Fernández, Chairman and Chief Executive Officer 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. Grupo Modelo’s Board believes that this combination will deliver significant benefits for all stakeholders.”
Modelo founded in 1925, is Mexico's biggest brewer with a 50 percent plus market share where it operates in a virtual duopoly with Heineken's FEMSA Cerveza, while Corona is the biggest imported beer in the lucrative United States market.
