2-1-2013
http://kplr11.com/2013/02/01/beer-m...titrust-lawsuit-against-anheuser-busch-inbev/
Beer Monopoly: US Govt. Files Antitrust Lawsuit Against Anheuser-Busch InBev
The Justice Department is taking on beer. It filed a civil antitrust lawsuit against Anheuser-Busch InBev because the company wants to merge with Mexicos Modelo, which makes Corona.
The Department says this merger would mean less competition and higher prices.
A deal would result in one company controlling about 46-percent of the American beer market.
ABI already owns about half of Modelo, which brews the popular Corona brand. The Justice Departments antitrust lawsuit accuses ABI of trying to eliminate a significant competitive threat from Modelos Corona brands by purchasing the rest of the Mexican company for a proposed $20.1 billion.
That deal would boost ABIs share of the U.S. beer market grow from about 39% to 46%, the lawsuit states. Add that to the 29% already controlled by No. 2 brewer MillerCoors, and two companies would split about three-quarters of the $80 billion field, said Bill Baer, the head of the Justice Departments antitrust division.
Beer prices have gone up in recent years because of this high concentration, Baer said Thursday morning. ABI and MillerCoors have been able to drive prices up year after year.
To avoid antitrust concerns, ABI had proposed selling off Modelos half-interest in its U.S. importer. But Justice argued that would produce only a facade of competition while eliminating a a particularly aggressive competitor from the market.
http://kplr11.com/2013/02/01/beer-m...titrust-lawsuit-against-anheuser-busch-inbev/
Beer Monopoly: US Govt. Files Antitrust Lawsuit Against Anheuser-Busch InBev
The Justice Department is taking on beer. It filed a civil antitrust lawsuit against Anheuser-Busch InBev because the company wants to merge with Mexicos Modelo, which makes Corona.
The Department says this merger would mean less competition and higher prices.
A deal would result in one company controlling about 46-percent of the American beer market.
ABI already owns about half of Modelo, which brews the popular Corona brand. The Justice Departments antitrust lawsuit accuses ABI of trying to eliminate a significant competitive threat from Modelos Corona brands by purchasing the rest of the Mexican company for a proposed $20.1 billion.
That deal would boost ABIs share of the U.S. beer market grow from about 39% to 46%, the lawsuit states. Add that to the 29% already controlled by No. 2 brewer MillerCoors, and two companies would split about three-quarters of the $80 billion field, said Bill Baer, the head of the Justice Departments antitrust division.
Beer prices have gone up in recent years because of this high concentration, Baer said Thursday morning. ABI and MillerCoors have been able to drive prices up year after year.
To avoid antitrust concerns, ABI had proposed selling off Modelos half-interest in its U.S. importer. But Justice argued that would produce only a facade of competition while eliminating a a particularly aggressive competitor from the market.
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