AB InBev completes purchase of Grupo Modelo

The saga of Anheuser-Busch InBev (AB InBev) and the Mexican beer conglomerate Grupo Modelo has finally come to closure. According to a Huff Post Business report, AB InBev has completed its $20.1 billion purchase of Grupo Modelo, S.A.B. de C.V., buying the reset of the company it did not already own.

Last summer, AB InBev (the biggest beer baron in the world, currently a publicly-traded company based in Leuven, Belgium) announced it was looking to buy the remaining 50 percent of Grupo Modelo, a Mexican beer rollup, home to famous American imports like Corona and Pacifico. The U.S. government filed a lawsuit to block the merger of these two giant beer companies, saying the deal would limit competition and lead to higher prices for American consumers.

In February, AB InBev made some power moves that satiated the Justice Department. The company pointed to Grupo Modelo and its joint venture with Constellation Brands (a Fortune 1000 company that is a world leader in premium wine). The joint venture is called Crown Imports LLC, and it allows Constellation to distribute and market Grupo Modelo’s beer brands in America, including Corona Extra, the No. 1 imported beer in America. To avoid antitrust concerns, Grupo Modelo and AB InBev have agreed to sell its half of the joint venture to Constellation Brands. Constellation would pay $1.8 billion to take complete ownership of Crown Imports, and AB InBev agreed to give up its option to buy the rights to distribute Grupo Modelo brands in the United States. According to Huff Post Business:

Constellation will sell Grupo Modelo brands including Corona in the United States, effectively replacing Grupo Modelo as a competitor to AB InBev. AB InBev expects that deal to close Friday [that’s today!]. AB InBev, based in Belgium, sells Budweiser, Stella Artois and other beers. The combined company will also sell Corona and other Modelo brands outside the United States.