Grupo Modelo files notice of arbitration against Anheuser-Busch

By Lisa Kerner

Charlotte, N.C., Oct. 16 - Grupo Modelo SAB de CV, its controlling shareholders, and its subsidiary Diblo, SA de CV, as expected, filed a notice of arbitration against Anheuser-Busch Cos. Inc., Anheuser-Busch International, Inc. and Anheuser-Busch International Holdings, Inc. regarding the proposed merger of Anheuser-Busch and InBev SA/NV.

According to Grupo Modelo, a Mexico City beer producer, the arbitration is related to its investment agreement with Anheuser-Busch governed by Mexican law.

The agreement prohibits Anheuser-Busch from transferring or disposing of its interests in Grupo Modelo and Diblo to a competitor in the beer business or without first giving the controlling shareholders of Grupo Modelo an opportunity to purchase the company's shares, a Grupo Modelo news release said.

Both InBev and Anheuser-Busch, commenting on the filing on Thursday, said they are confident the claims made by Grupo Modelo are without merit.

InBev and Anheuser-Busch don't believe the arbitration will impact the completion of the transaction, which is expected to close by the end of 2008, the companies' statements said.

Anheuser-Busch has a reported 50% stake in Grupo Modelo, the importer of its products in Mexico, including Budweiser, Bud Light and O'Doul's.

InBev, a Leuven, Belgium-based brewing company, and St. Louis-based brewer Anheuser-Busch agreed in July to combine to form Anheuser-Busch InBev in a deal valued at $52 billion, or $70 per share.

Anheuser-Busch shareholders will be asked to approve the company's merger with InBev at a special meeting on Nov. 12 in Secaucus, N.J.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.