Do you prefer a Corona Extra over a good ol’ Bud? Soon those two very different beers could be brethren under the giant umbrella of Anheuser-Busch InBev, as the company is reportedly close to buying the half of Grupo Modelo it doesn’t own already. One big beery family.
DealBook cites people briefed on the situation, who say the deal might cost Anheuser-Busch InBev more than $12 billion. Talks might still peter out, as the relationship between the two beer makers is less than perfect.
Modelo is controlled by descendants of the company’s founders, while InBev took over Aneheuser-Busch in 2008, acquiring the company’s 50% non-controlling stake in Modelo at that time. Back then, Modelo took its new parents to court claiming that the deal had violated its pact with the Budweiser maker. An arbitrator later ruled in favor of Anheuser-Busch InBev.
Though negotiations this time around have at times been rough, with issues like price and antitrust clearance, a deal would combine Modelo’s beers with the world’s biggest brewer and its huge stable of brands like Budweiser and Stella Artois.
This would be just the latest smushing of big companies in the beverage industry recently, and only the second-biggest takeover by Anheuser-Busch InBev.