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AB InBev is close to making a huge purchase of Grupo Modelo, which would give the company control over the massive Corona brand, reports Dana Cimilluca at the Wall Street Journal.AB InBev already owns a non-controlling 50 per cent stay in Grupo Modelo, and the deal should be done early this week, though it’s possible that it may still fall through.
The buyout may cost AB InBev up to $15 billion, reports Reuters.
It would give AB InBev control of a stable of brands including Corona, Negra Modelo, Modelo Especial, Modelo Light, Victoria and Pacifico.
AB InBev is coming off the big acquisition of Cerveceria Nacional Dominicana — the maker of Presidente — in April for $2.5 billion. Its rivals have made huge plays in the past couple years as well. SABMiller bought Foster’s for $10 billion and Heineken dished out $7 billion for Femsa Cerveza.
It’s all about brands in big brewing, and the grand prize in this for AB InBev is Corona Extra — one of the world’s biggest beer brands. If the deal goes through, it will join AB InBev’s already super-strong beer portfolio, which includes Stella Artois, Budweiser and Beck’s.
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