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M&A: ABInBev buys Corona producer for $20 billion

By: Jennifer Fottrell

(beveragemanager.net) - ABInBev purchased the remaining 50% of Mexico's Grupo Modelo. ABInBev purchased Mexican Modelo, the producer of Corona, for 20.1 billion Dollars. The operation is aimed at taking over the emerging markets. Grupo Modelo, which was founded in 1925, controls 50% of Mexico's beer market.

Carlos Brito, CEO of Anheuser-Busch InBev

Carlos Fernández, Chairman of Grupo Modelo

The combination will be completed through a series of steps that will simplify Grupo Modelo’s corporate structure, followed by an all-cash tender offer by AB InBev for all outstanding Grupo Modelo shares. The tender price represents a premium of approximately 30% to the closing price of Grupo Modelo series C shares on June 22, 2012.

The combined company would lead the global beer industry with roughly 400 million hectoliters of beer volume annually and 2012 estimated revenues of USD 47 billion. Its operations would span 24 countries with enhanced opportunities for 150,000 employees across the globe.

“Grupo Modelo has been one of our most important partners for more than 20 years and we are very pleased to evolve our long and successful relationship into this combination,” said Carlos Brito, Chief Executive Officer of Anheuser-Busch InBev.

The combined company would unite 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.

“Together we will be the leading global brewer with top brands around the world and positions in some of the fastest growing countries. This is an exciting transaction that will bring our brands and proud heritage to even more consumers internationally while offering an increasing number of AB InBev’s brands in Mexico," said Carlos Fernández, Chairman and Chief Executive Officer of Grupo Modelo. (bmg)