AB InBev and Justice Dept extend talks

March 18
9:23 AM 2013

Anheuser-Busch InBev NV and the Justice Department will seek court permission to extend talks on a settlement proposal of a lawsuit blocking the beermakers acquisition of Grupo Modelo SAB. This was confirmed by two people who spoke on condition of anonymity.

The extension is not a negative sign as a Washington federal judge ordered the suspension of litigation pending the progress of such settlement discussions. The issue is about AB InBev's revised proposal to sell its control of all Modelo brands in the US as well as its Mexican brewery to Constellation Brands Inc. For its part, the Justice Department is reviewing the plan of Constellation to increase its capacity by 70% at the Piedras Negras plant to be able to keep the Modelo brand products viable as competition in the US beer market.

When sought for comment, Laura Vallis, spokesperson for AB In Bev and Jennifer Shelley, spokesperson for Grupo Modelo both declined to issue any statements.

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