AB InBev seals Modelo deal

AB InBev has hailed its acquistion of the remainder of Mexico’s Grupo Modelo for US$20.1 billion as a “tremendous achievement.”

The Belgium-based maker of Budweiser will pay $9.15 a share in cash, according to details released by the company in a statement. In the process AB InBev will gain full control of the Corona maker to increase its presence in emerging markets.

As previously reported in the drinks business AB InBev already owned a 50.4% stake in Modelo, havinginherited the stake when InBev bought Anheuser-Busch in 2008 for $52 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 AB 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,” he continued. “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 company’s longstanding success within Mexico and internationally and look forward to their continued contributions.

“Together we will be the leading global brewer with top brands around the world and positions in some of the fastest growing countries.”

AB InBev said it expects the combined company to deliver cost and revenue benefits of at least $600 million annually.

Grupo Modelo’s name, identity, heritage and headquarters in Mexico City will be maintained, and the company will continue to have a local board.