DOJ Sues To Block Bud Light And Corona Combination

The Department of Justice ("DOJ") has filed a civil antitrust lawsuit challenging the $20 billion proposed acquisition by Anheuser-Bush InBev ("ABI") of the remaining 50 percent interest in Grupo Modelo S.A.B. de C.V. ("Modelo"), the producer of Corona Extra, the best-selling imported beer in the United States.  The lawsuit alleges that the transaction would not only eliminate head-to-head competition, resulting in increased prices and less innovation, but also would remove Modelo as a disruptive pricing influence in the overall marketplace. The DOJ rejected ABI's attempt to resolve the DOJ's concerns through a voluntary supply agreement, which would have allowed Modelo's existing joint venture partner in the U.S., Constellation, to gain exclusive control over the import of Modelo beer into the United States for a period of at least ten years.