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Anheuser-Busch in talks to buy out Grupo Modelo: WSJ
Posted on Monday, 25 June 2012 14:43
Mexican beer producer Grupo Modelo could be the target of a takeover offer, according to the Wall Street Journal (WSJ), citing a person familiar with the matter.
This person said Belgian brewer Anheuser-Busch InBev, which already owns half of the Mexican Stock Exchange-listed business, is in talks to acquire the remaining 50.0 per cent stake.
They added that the deal could be valued at more than USD 12.00 billion.
According to WSJ, a transaction could take place as early as this week.
However, the person added that it is also possible the discussions could collapse without the two sides reaching an agreement.
According to WSJ, Grupo Modelo’s shares closed at MXN 97.95 (USD 7.03) on Friday, up 2.9 per cent on Thursday’s price.
Both companies declined to comment.
Grupo Modelo is the leader in beer production, distribution and marketing within Mexico according to its website, and is known for brewing the Corona, Barrilito and Monteja brands.
The firm also imports beers such as Carlsberg and Tsingtao.
It was founded as Cerveceria Modelo in 1925 and is headquartered in Mexico City.
According to its website, Anheuser-Busch is the leading brewer and one of the five largest consumer products firms worldwide.
The firm’s portfolio consists of more than 200 brands, including Budweiser, Stella Artois and Beck’s.
It is based in Leuven and employs around 116,000 people.
Anheuser-Busch generated revenue of USD 39.05 billion in fiscal 2011, up 7.6 per cent on the USD 36.30 billion recorded in 2010.
The company is listed on Euronext and is active throughout north and south America, Europe, and the Asia Pacific region.
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