MEXICO CITY -- Grupo Modelo S.A.B. de C.V. and Subsidiaries, the leading brewer in Mexico, has announced that in light of the proposed transaction between Anheuser-Busch and InBev, Grupo Modelo has advised both parties that it is reserving its contractual rights. Under its agreements with Anheuser-Busch, Grupo Modelo has certain rights with respect to the potential transaction between InBev and Anheuser-Busch, including a consent right. Grupo Modelo noted that it has been in active discussions with InBev regarding how the two companies can work together should Grupo Modelo consent to InBev becoming [image-nocss] a minority owner of Grupo Modelo through its acquisition of Anheuser-Busch.
"Our agreement with Anheuser-Busch was carefully constructed to ensure we have a definitive say in who our partner is," Grupo Modelo said in a statement. "We are confident that our agreement, which is governed by Mexican law, gives us the right to decide whether or not to consent to the potential acquisition of Anheuser-Busch by InBev. We have a great deal of respect for InBev and look forward to continuing our discussions with them and hope to find a resolution that meets the needs of both companies and their stakeholders."
Grupo Modelo, founded in 1925, is the leader in Mexico in beer production, distribution and marketing, with 63.0% of the total (domestic and export) market share, as of Dec. 31, 2007. It has seven brewing plants in Mexico, with a total annual installed capacity of 60 million hectoliters. Currently, it brews and distributes 12 brands, including Corona Extra, the No. 1 Mexican beer sold in the world, Modelo Especial, Victoria, Pacifico and Negra Modelo. It exports five brands and is present in 159 countries. It is the importer of Anheuser-Busch's products in Mexico, including Budweiser, Bud Light and O'Doul's. It also imports the Chinese Tsingtao brand and the Danish beer Carlsberg. Through a strategic alliance with Nestle Waters, it produces and distributes in Mexico the bottled water brands Santa Maria and Nestle Pureza Vital, among others.
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