U.S. sues to stop beer deal to unite Bud and Corona

[Eugene]

Source: Reuters

U.S. sues to stop beer deal to unite Bud and Corona

By Diane Bartz and Martinne Geller
WASHINGTON/NEW YORK | Thu Jan 31, 2013 5:38pm EST

(Reuters) - The U.S. government has filed a lawsuit seeking to stop Anheuser-Busch InBev SA (ABI.BR) from buying the half of Mexican brewer Grupo Modelo (GMODELOC.MX) that it does not already own, saying the $20.1 billion deal could mean higher U.S. beer prices.

The government's move calls into question the future of one of the biggest deals of 2012 and a related deal that was set to change the fortunes of the world's largest wine company, Constellation Brands Inc (STZ.N). Shares of all three companies fell sharply on the news.

Despite a huge array of beers on store shelves, the beer market is dominated by two big players.

The top seller is AB InBev, which has 200 brands ranging from big names like Budweiser and Stella Artois to craft-style beers like Shock Top and Goose Island. The No. 2 player is MillerCoors, a joint venture between SABMiller Plc (SAB.L) and Molson Coors Brewing Co (TAP.N).

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Read more: http://www.reuters.com/article/2013/01/31/us-modelo-abi-antitrust-idUSBRE90U0X620130131

[msongs]

1. higher prices? good way to regulate the disasterous effects alcohol has on this country nt

[DJ13]

2. Oh sure, banks buying banks, growing so big they threaten the economy is okay

But beer, now thats important!

[kickysnana]

3. My governement is protecting me from beer mergers but not big fuel?

There are thousands of microbreweries. Speculation in food prices? Yes and they do nothing. The priorities are insane.