Marketing

AB InBev buys Grup Modelo for €20m

With half of Corona-owner Grupo Modelo’s shares already in AB InBev ownership, the brewing conglomerate has purchased the remaining 50 per cent of the Mexican brewery’s shares for $20.1 billion.

Together, AB InBev and Grupo Modelo now lead the global beer industry in producing 400 million Hectolitres of beer a year which generate revenues of around $47 billion in 24 countries and employ 150,000 combined.

The deal smooths the way for Grupo Modelo’s brands to expand globally through AB InBev’s international distribution network while also being able to offer an increasing number of AB InBev’s brands in Mexico itself.

The amalgamation – if approved by the appropriate regulatory authorities in the US and Mexico as well as a number of other countries – will create a significant growth opportunity worldwide, bringing together five of the top six and seven of the top ten most valuable beer brands in the world.

Corona is expected to build on its rich tradition and unique brand positioning to become a global flagship brand alongside Budweiser, joining other global brands such as Stella Artois and Beck’s.

The combined company unites Grupo Modelo’s number one position in the world’s fourth-largest profit pool with AB InBev’s leading global position, further increasing AB InBev’s exposure to fast-growing developing markets.

The development provides “meaningful opportunities” to grow Corona globally outside the US and Mexico given AB InBev’s established platform for distribution worldwide and the resources at its disposal as the world’s leading brewer.

To date, Grupo Modelo has developed Corona into the leading import beer in 38 countries and has successfully marketed the brand in 180 countries. 

As part of the deal, Grupo Modelo’s name, identity, heritage and headquarters remain in Mexico City and the company will continue to have a local board. Two Grupo Modelo board members will join AB InBev’s Board of Directors.

While the deal still needs Grupo Modelo shareholder approval in a general meeting and other customary closing conditions, the two companies will work proactively with regulators to move through the review process efficiently. It’s expected to close during the first quarter of 2013.

 

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