Anheuser-Busch InBev, who already owned 50 percent stake in the Mexican brewer Grupo Modelo, has now bought out the remaining stake for $20.1 billion.
Unlike InBev’s takeover of Anheuser-Busch, this buy will let Group Modelo maintain independence. Grupo Modelo’s headquarters will remain in Mexico City and will keep their local board of directors. The company was founded in 1925 and currently has 37,000 employees and brews and distributes 13 brands, including Corona, Modelo Especial, Victoria, Pacifico and Negra Modelo.
Carlos Brito, chief executive of Anheuser-Busch InBev said in a statement, “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. 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.”
Anheuser-Busch buying Corona beer maker will be the second largest acquisition in the company’s history. In 2008, InBev bought Anheuser-Busch, based in St. Louis, for $52 billion which created the name, Anheuser-Busch InBev.
Some analysts believe that AB InBev will now put SABMiller in line for their next acquisition. While others believe that PepsiCo would make more sense for them to acquire.
Anheuser-Busch InBev buying Corona beer maker, Grupo Modelo comes the same day that Constellation Brands bought out the remaining half of Crown Imports that it didn’t already own from Anheuser-Busch InBev for $1.85 billion.
That means, Constellation, which makes Robert Mondavi and Ravenswood wines and now owns the exclusive rights to import, market and sell the Modelo Brands through Crown Imports.
Constellation Brands chief executive, Rob Sands said in a statement, “This is a significant milestone in the history of Constellation Brands. Our full ownership of this significant beer business provides an additional strategic lever for driving overall profitable organic growth. It will solidify Constellation Brands’ position as the largest multi-category supplier of beverage alcohol and the third largest total beverage alcohol company in the U.S.”
In the last 12 months, InBev has bought the Dominican Republic’s Cerveceria Nacional Dominicana for more than $1.2 billion, Molson Coors bought Eastern European brewer StarBev for $2.65 billion and SABMiller bought the Australian brewer, Foster’s for $11.8 billion.
Budweiser, Corona Join for $20.1 Billion
Anheuser-Busch InBev takes control of Corona maker Grupo Modelo SAB in a deal that is valued at more than $20 billion.