Judge Grants More Time For Accord On A-B InBev, Modelo Deal

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The judge overseeing negotiations between Anheuser Busch-InBev and the U.S. Justice Department over the Grupo Modelo deal approved a stay in court proceedings Tuesday to give the sides more time to reach an accord.  The two sides requested an extension of the stay last week in order to wrap up an agreement that would end litigation.

A-B InBev made a deal last June to buy half of Grupo Modelo for $20.1 billion, but the Department of Justice filed a lawsuit in January to block the merger, saying the deal “would substantially lessen competition in the market for beer in the United States.”  As a response, the St. Louis-based brewer announced revisions to the merger in February.  Those revisions include: agreeing to sell Modelo’s Piedras Negras brewery, near the Texas border, to Constellation Brands and grant it perpetual rights for the Corona and Modelo brands distributed by Crown in the U.S. at a cost of $2.9 billion.

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