AB Inbev (BUD), Grupo Modelo Support Constellatio (STZ), Crown Move to Intervene
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Anheuser-Busch InBev (Euronext: ABI)(NYSE: BUD) today confirmed that it has filed a memorandum with the United States District Court for the District of Columbia in support of Constellation Brands, Inc. ("Constellation") and Crown Import LLC's ("Crown") Motion to Intervene as parties to the antitrust complaint filed by the U.S. Department of Justice (the "DOJ") on January 31. Grupo Modelo, S.A.B. de C.V. (BMV: GMODELOC) has joined in the filing. This filing is in connection with AB InBev's pending transaction to acquire the remaining shares in Modelo that it does not already own.
Constellation and Crown are asking the Court to be joined to the DOJ lawsuit as parties to protect their rights and support the transaction. AB InBev and Modelo support Constellation and Crown's entry into the case and welcome their participation in contesting the DOJ's allegations. Today's memorandum also confirms that AB InBev and Crown are strong competitors in the U.S. beer marketplace and will remain so after the proposed transaction.
In addition, the memorandum explains that the proper legal standard for the DOJ's case requires evaluation of the net effect of the two transactions. As Constellation and Crown point out in their motion, the net effect is a more effective and competitive Crown.
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Constellation and Crown are asking the Court to be joined to the DOJ lawsuit as parties to protect their rights and support the transaction. AB InBev and Modelo support Constellation and Crown's entry into the case and welcome their participation in contesting the DOJ's allegations. Today's memorandum also confirms that AB InBev and Crown are strong competitors in the U.S. beer marketplace and will remain so after the proposed transaction.
In addition, the memorandum explains that the proper legal standard for the DOJ's case requires evaluation of the net effect of the two transactions. As Constellation and Crown point out in their motion, the net effect is a more effective and competitive Crown.
For more color, click here.
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