Anheuser-Busch InBev (NYSE: BUD) (AB InBev) will sell the U.S. rights to Corona and other Grupo Modelo (BMV: GMODELOC) brands to Constellation Brands Inc. (NYSE: STZ) for $2.9 billion, after the U.S. Justice Department sued to block AB InBev’s deal to acquire Modelo.
Compañía Cervecera de Coahuila, Modelo’s brewery in Piedras Negras, Mexico, will go to Constellation through the deal.
On Jan. 31 the Justice Department filed an antitrust lawsuit to block AB InBev’s $20.1 billion deal for Modelo, saying the transaction would reduce competition in the beer market and would result in consumers paying more for beer.
Constellation had already agreed in June to buy Modelo’s 50 percent stake in Crown beer for $1.85 billion.
For more on the deal, see “AB InBev/Model Deal Amplifies Consolidation in Emerging Markets."
The announcement comes on the heels of Japanese beer and beverage maker Asahi Group’s filing a lawsuit in Australia against two private equity firms over a $ 1.53 billion deal in New Zealand two years ago.
Asahi Holdings Australia is suing Pacific Equity Partners of Australia and Unitas Capital of Hong Kong, accusing the two firms of falsely represented the financial position of Independent Liquor by significantly inflating its Ebitda. Unitas and Pacific Equity have each rejected Asahi’s claims.