Inactive Instrument

Grupo Modelo SAB de CV

MXP4833F1044

Brewers

End-of-day quote Mexican S.E. Other stock markets
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2014	American Airlines Group Inc : In U.S. mergers, no one waits for this waiting period	RE
2014	Alimentation Couche-Tard Inc : Brewer Grupo Modelo to sell Extra retail business to Circle K	RE

Grupo Modelo SAB de CV : Constellation buying out Modelo beer importer

June 29, 2012 at 08:58 am

MarketScreener.com By

(Reuters) - Constellation Brands Inc will buy the 50 percent interest in Crown Imports that it does not already own for $1.85 billion as its joint venture partner Grupo Modelo is bought by Anheuser-Busch InBev.

Constellation, whose shares rose nearly 13 percent in premarket trading, also reported slightly better-than-expected quarterly profit on Friday and stood by its full-year earnings outlook.

The maker of Robert Mondavi and Ravenswood wines also said it plans to buy the Mark West pinot noir wine brand for $160 million.

AB InBev, the world's biggest brewer, said on Friday it would buy the half of Modelo it does not already own for $20.1 billion.

In a separate transaction, AB InBev will sell Modelo's stake in the Crown Imports joint venture to Constellation. The venture imports and distributes Modelo's beers in the United States.

Analysts said the plan to sell Modelo's stake in Crown was aimed at avoiding anti-trust concerns in the United States, where AB InBev already controls about 49 percent of the beer market. Adding the Corona import business would push its market share up by a further 5 percent.

Constellation said it had fully-committed bridge financing in place to complete the Crown Imports acquisition, and expects the deal to boost its ongoing diluted earnings per share and free cash flow.

The deal is expected to close during the first quarter of 2013.

Crown Imports contributed $215 million in equity earnings to the company in fiscal 2012, Constellation said in a statement.

PROFIT SLIPS

Constellation said it earned $72 million in its fiscal first quarter ended May 31, down from $74.5 million a year earlier. On a per-share basis, earnings were 38 cents, up from 35 cents a year earlier, when there were more shares outstanding.

Excluding one-time items, Constellation earned 40 cents per share. On that basis, analysts on average were expecting 39 cents, according to Thomson Reuters I/B/E/S.

Net sales slipped to $634.8 million from $635.3 million.

Constellation shares rose to $24.50 in premarket trading from a close on Thursday at $21.76 on the New York Stock Exchange.

(Reporting by Martinne Geller in New York; Additional reporting by Balaji Sridharan in Bangalore; Editing by Jane Merriman and John Wallace)

Stocks treated in this article : AB INBEV, Grupo Modelo SAB de CV, Constellation Brands, Inc.

Latest news about Grupo Modelo SAB de CV

American Airlines Group Inc : In U.S. mergers, no one waits for this waiting period	14-03-05	RE
Alimentation Couche-Tard Inc : Brewer Grupo Modelo to sell Extra retail business to Circle K	14-02-10	RE
Neftyanaya kompaniya LUKOIL OAO : Mexico draws over $7 billion in foreign investment at Davos	14-01-24	RE
ANHEUSER-BUSCH INBEV : Big Mexican brewers forced to open local beer market	13-07-11	RE
Grupo Modelo SAB de CV : Constellation Brands sees no change in beer pricing plan	13-05-03	RE
Constellation Brands, Inc. : U.S., beer giant InBev settle dispute over Modelo buy	13-04-19	RE
Grupo Modelo SAB de CV : AB InBev says Modelo deal largely in line with its revisions	13-04-19	RE
ANHEUSER-BUSCH INBEV : AB InBev, Justice Department are near an agreement in beer deal	13-04-05	RE
Grupo Modelo SAB de CV : SABMiller sees more LatAm growth, Brazil at standstill	13-03-25	RE
Grupo Modelo SAB de CV : U.S. judge approves delay in Justice Dept-InBev beer fight	13-03-20	RE
Constellation Brands, Inc. : Justice, AB InBev seek to extend delay in big beer deal	13-03-15	RE
InBev, Justice Department seek delay in courtroom beer fight	13-02-20	RE
SABMiller plc : SABMiller CEO's successor to get less boost from deals	13-02-20	RE
Constellation Brands, Inc. : AB InBev revises Modelo deal to clear U.S. objections	13-02-14	RE
Grupo Modelo SAB de CV : In beer antitrust case, U.S. puts successful theory to a new test	13-02-06	RE
Constellation Brands, Inc. : AB InBev could keep Mexico prize with brewery sale	13-02-01	RE
AB INBEV : Constellation attacks DOJ reasoning in move to block Modelo deal	13-02-01	RE
AB INBEV : U.S. sues to stop beer deal to unite Bud and Corona	13-01-31	RE
AB INBEV : Mexico's Modelo says sale to AB InBev will not close in first quarter	13-01-31	RE
Grupo Modelo SAB de CV : AB InBev says to vigorously contest DOJ challenge to Modelo buy	13-01-31	RE
Grupo Modelo SAB de CV : Constellation buying out Modelo beer importer	12-06-29	RE
Companhia de Bebidas das Americas-AmBev : AB InBev buys out Corona maker Modelo for $20 billion	12-06-29	RE
Grupo Modelo SAB de CV : Modelo seen holding cards in AB InBev talks	12-06-25	RE
Companhia de Bebidas das Americas-AmBev : AB InBev in talks to buy Mexico's Modelo	12-06-25	RE
Grupo Modelo SAB de CV : AB InBev says in talks with Corona brewer Modelo	12-06-25	RE

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