Anheuser-Busch Buys Grupo Modelo

Print Email

The world’s largest brewer just got much larger. Anheuser-Busch InBev (NYSE: BUD) will buy the half of Grupo Modelo is does not already own. The price is $20.1 billion. Grupo Modelo is based in Mexico, and by some measures has most of the market for beer in that country. It also exports several products that are popular in the United States, such as Corona.

While the deal picks up more revenue for Anheuser-Busch, it probably does not have the economies of scale that many buyouts have. Grupo Modelo’s operations are in Mexico, far from most of Anheuser-Busch’s operations in the U.S. and Europe. And the markets for Budweiser and Corona may have little in common, which means advertising budgets will remain intact.

Douglas A. McIntyre