Feds Settle With Bud and Corona Makers on Merger

WASHINGTON (CN) - The makers of Budweiser and Corona resolved antitrust concerns over their planned merger by divesting certain subsidiaries, federal officials told the court Friday.
    The United States had sued Anheuser-Busch InBev and Grupo Modelo in January to block their planned merger and preserve competition in the nation's $80 billion annual beer market.
    InBev, of Belgium, bought St. Louis-based Anheuser-Busch for $52 billion in 2008. Anheuser-Busch InBev makes Busch, Budweiser, Michelob and other brands. Grupo Modelo's Corona meanwhile is best-selling imported beer in the United States. Together, they control 46 percent of the U.S. beer market.
    Earlier this year, the parties told U.S. District Judge Richard Roberts that a revision to the proposed merger necessitated a stay of proceedings until March 19.
    They said InBev planed to sell a brewery that produces certain Grupo Modelo beers to the Victor, N.Y.-based premium winery Constellation Brands Inc. InBev would also grant Constellation perpetual brand licenses for U.S. Grupo Modelo brands and other assets.
    Pleased with the terms, the Justice Department filed a proposed settlement with the court on Friday.
    The deal gives Constellation Brands control over Modelo's entire U.S. business, including licenses of Modelo brand beers; its most advanced brewery, Piedras Negras; and its interest in Crown Imports.
    Crown is the joint venture established by Modelo and Constellation to import, market and sell certain Modelo beers into the United States.
    Divestiture of other assets, rights and interests will ensure that Constellation can compete in the U.S. beer market using the Modelo brand beers, independent of a relationship to ABI and Modelo, the Justice Department said.
    "The proposed settlement announced today will create an independent, fully integrated and economically viable competitor to ABI," Assistant Attorney General Bill Baer said in a statement. "This is a win for the $80 billion U.S. beer market and consumers. If this settlement makes just a one percent difference in prices, U.S. consumers will save almost $1 billion a year."

[color=rgb(44, 64, 112)] Mom says 'Alcohol is your enemy'... Jesus says 'Love your enemy.' [/color]