A-B InBev Says CVC Capital Owes Payment

The Anheuser-Busch logo on a company factory in St. Louis | Photo courtesy of Creative Commons
A dispute between A-B InBev and private equity firm CVC Capital is headed to court.  The dispute involves a payment A-B InBev says CVC owes based on its 2009 purchase of an Eastern European beer company, according to the Wall Street Journal.

In December 2009, A-B InBev sold operations, known as StarBev, in several countries to CVC for $2.2 billion in cash and other consideration. The deal gave A-B InBev a Contingent Value Right, a reward after the sale pegged to CVC’s return on the investment.  CVC sold StarBev in June 2012 to Molson Coors Brewing Co. for about $3.4 billion.

A-B InBev officials believe the terms of the sale to Molson triggered an obligation on CVC’s part to make an additional payment, according to last week’s filing.  CVC argues it doesn’t owe the payment.

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