View Cart (0 items)
Food & Beverage

Grupo Modelo files notice of arbitration against Anheuser-Busch over sale to InBev

October 16, 2008
/ Print / Reprints /
| Share More
/ Text Size+

Grupo Modelo has filed a notice of arbitration against its part owner, Anheuser-Busch Cos. Inc., saying that the company''s pending sale to InBev violates their investment agreement, as reported by the Associated Press. Since the $52 billion deal to sell the brewer of Budweiser and Bud Light to InBev was announced this summer, Grupo Modelo, Mexico''s largest brewer, has said that it has consent rights over the deal. The company, which is 50 percent owned by Anheuser-Busch, had been in talks with InBev related to that. In late July, Grupo Modelo Chief Executive Officer Carlos Fernandez said the company has rights to be able to choose whether it enters a partnership with InBev. The company said in a news release its investment agreement under Mexican law prohibits Anheuser-Busch from taking actions that would mean a transfer or sale of its interests in Grupo Modelo to a competitor in the beer business. The company also said the agreement means its own shareholders should first have the opportunity to buy the shares in Modelo and its subsidiary, Diblo, which would be transferred by Anheuser-Busch to InBev. Anheuser-Busch''s roughly 50 percent stake in the company is non-controlling. Anheuser-Busch and InBev said in separate statements that they believed Grupo Modelo''s claims have no merit. Both companies said the arbitration would have no impact on the deal and it would close by the end of the year as expected.

You must login or register in order to post a comment.