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AB InBev Consolidates Global Leadership With $20.1 Billion Acquisition

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AB InBev Consolidates Global Leadership With $20.1 Billion Acquisition

AB InBev Consolidates Global Leadership With $20.1 Billion Acquisition
July 02
12:10 2012

Anheuser-Busch InBev has agreed to acquire the remaining stake in Mexican brewer Grupo Modelo that it does not already own for $20.1 billion. The combination is expected to yield annual synergies of at least $600 million and add the Corona brand to the AB InBev’s portfolio.

The agreement is a natural next step given AB InBev’s existing economic stake of more than 50% in Grupo Modelo and the successful long-term partnership between the two companies. The combined company would lead the global beer industry with roughly 400 million hectoliters of beer volume annually and 2012 estimated revenues of $47 billion. Its operations would span 24 countries with a workforce of 150,000 people.

Carlos Brito, chief executive of Anheuser-Busch InBev.

“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,” says Carlos Brito, chief executive of Anheuser-Busch InBev. “There is tremendous opportunity from combining two leading brand portfolios and further expanding Grupo Modelo’s brands worldwide through AB InBev’s extensive global distribution network.”

The combination would bring together five of the top six and seven of the top ten most valuable beer brands in the world, each with distinct brand imagery and consumer positioning. 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.

Building on its rich tradition and unique brand positioning, Corona would become a global flagship brand alongside Budweiser and join global brands Stella Artois and Beck’s. There will be meaningful opportunities to grow Corona globally outside the US and Mexico, given AB InBev’s established platform for distribution worldwide and the resources at its disposal as the leading global brewer.

Grupo Modelo’s name, identity, heritage and headquarters in Mexico Citywill be maintained, and the company will continue to have a local board.

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