• 
• See all for Doug Sweeney
• View Print Version

• AB InBev to reportedly buy Modelo for $12 billion

• ABI 0% Rate It

While it might not necessarily change how thirsty Americans stock their coolers for Fourth of July barbecues, Anheuser-Busch InBev's ( ABI ) reported purchase of Grupo Modelo (GMODELOC) is still big news.

The planet's largest brewer will purchase the maker of Corona for more than $12 billion, a person with knowledge of the situation said.

InBev gained a 50 percent, non-controlling stake in Modelo in 2008 when it purchased Anheuser-Busch Cos. for $52 billion.

Mikihiko Yamato, the deputy head of research at JI Asia in Tokyo, told Bloomberg that this move makes Anheuser-Busch InBev more powerful.

"This is the deal where the strong one becomes even stronger," he said. "It's like musical chairs, and the good deals are taken by strong ones first, and there is not much left for the rest."

The New York Times reports that Modelo has a market value of around $23 billion and that an official announcement of the deal may take place this week.

If the deal is finalized, it will be the second largest takeover in Anheuser-Busch InBev's history, following only the 2008 deal. The move is seen by some as a continuation of the consolidation trend in the beverage sector .

Related Business Articles

• 
  Glacier Bancorp Hits New 52-Week High - Analyst Blog
  6/18/2013 07:30 PM
• 
  Himax Hikes Annual Dividend - Analyst Blog
  6/18/2013 07:30 PM
• 
  Las Vegas Sands Kept at Neutral - Analyst Blog
  6/18/2013 07:30 PM