29 June 2012
Another billion dollar deal going on in the beer world today. This from Reuters:
Constellation Brands Inc will buy the remaining half of its Crown Imports joint venture for $1.85 billion to get full control of distributing popular beers like Corona Extra and Modelo Especial in the United States.
Constellation shares jumped nearly 23 percent to their highest level in years on the news. The deal to buy out Grupo Modelo gives Constellation control of the best-selling imported beer in the lucrative U.S. market.
"We think this is transformative and positive to Constellation," said Stifel Nicolaus analyst Mark Swartzberg. He raised his rating on Constellation shares to "buy."
Constellation said on Friday it was buying out its joint venture partner, Mexican brewer Modelo, which is being acquired by Anheuser-Busch InBev
Analysts said anti-trust concerns likely prompted the sale of the stake, as AB InBev already controls some 49 percent of the U.S. beer market with brands like Bud Light.