Mexico: Grupo Modelo’s shares fall on US DOJ decision to block its buyout by AB InBev

Shares of Mexican brewer Grupo Modelo SAB fell sharply on January, 31 after the U.S. Department of Justice sought to block the buyout of Modelo by partner Anheuser-Busch InBev NV.

Modelo series C shares that trade on the Mexican stock market were down 6.9% at 108.00 pesos ($8.49) around 11:30 a.m. EST.

The share price has moved little since AB InBev agreed last June to buy the 50% of Modelo it doesn't own for $20.1 billion. AB InBev, which makes Bud Light beer, has a 50% non-controlling stake in Modelo, which makes the top U.S. import Corona Extra. Mexican antitrust authorities approved the buyout in November.

In a filing with the local exchange, Modelo said AB InBev "has let us know that it intends to energetically challenge the Department of Justice's actions with all the legal resources at its disposal."

Modelo said it no longer expects the deal to close in the first quarter of 2013.

06 February, 2013