USA: US anti-trust regulators ask for more information regarding AB InBev’s takeover of Grupo Modelo

U.S. anti-trust regulators are taking a close look at Anheuser-Busch InBev's planned takeover of Mexican brewer Grupo Modelo, the world’s No. 1 brewer said on August, 17.

The company reported that it has received a so-called "second request" for information for information about the $20 billion deal from the U.S. Department of Justice. The request is fairly standard in large mergers, and AB InBev said it expects no delays in closing the deal, which will give it control of the world's seventh-largest brewer and its flagship brand, Corona.

"The company intends to respond expeditiously to the second request and continues to expect the transaction to close during the first quarter of 2013," AB InBev said in a statement.

The deal would give AB InBev ownership of beers comprising 53 percent of the U.S. beer market - and an even higher share in some big states like Florida and Texas - which raised anti-trust concerns even before it was announced in June. In a bid to ease those worries, AB InBev handed over U.S. importation and distribution rights for Modelo brands to Crown Imports, which currently partners with the Mexican brewer, essentially creating an arms-length distance between Corona and AB in the U.S.

Some analysts, notably Bernstein Research's Trevor Stirling, have predicted that steps may not be enough distance and that the feds may require even more divestiture on AB's part. That could threaten the deal itself, Stirling wrote, though AB InBev chief executive Carlos Brito has said he's confident it will pass muster.

22 August, 2012