Justice Dept. Sues to Block Budweiser-Corona Beer Monopoly

Budweiser Merger

A super merger between the parent companies of beer giants Budweiser and Corona is facing resistance from the U.S. Justice Department.

Anheuser-Busch InBev promised a court fight to preserve its merging deal with Grupo Modelo.

Budweiser brewer Anheuser-Busch InBev (ABI) company is looking to acquire Corona brewer Grupo Modelo for an estimated price of $20.1 billion.

The U.S. Justice Department filed a lawsuit today that could put an end to the deal. The U.S. Justice Department contends that this merger would lead to a lack of competition in the beer market.

The U.S. Justice Department stated that both firms combined bring in about 46 percent of the $80 billion in annual beer sales in the U.S. This market share is noted as being too big of a market share for just one company.
budweiser corona merger

Assistant attorney general Bill Baer provided a statement to BBC UK about the forthcoming lawsuit:

If ABI fully owned and controlled Modelo, ABI would be able to increase beer prices to American consumers. This lawsuit seeks to prevent ABI from eliminating Modelo as an important competitive force in the beer industry.

Anheuser-Busch InBev responded to Baer’s statement with this:

We remain confident in our position, and we intend to vigorously contest the DOJ’s action in federal court.

Budweiser Corona Merger

The Beer Institute shows that the beer industry is a $223 billion industry. That also includes more than 2,500 brewers and 1.8 million jobs. Bud Light currently stands as the best selling beer in the nation, while Corona Extra is the best-selling imported beer. The Justice Department fears that a Budweiser/Corona merger would control nearly half of all beer sales in the U.S.

We’ll just have to wait and see if this lawsuit keeps the mega powers of beer from driving up the price of your buzz.

Here’s the DOJ’s official complaint, filed with the U.S. District Court in Washington, D.C.:

No Comments

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Discuss on Facebook