Anheuser-Busch InBev Announces Agreement with DOJ and Filing of Proposed Final Judgment with Court

Anheuser-Busch InBev (Euronext: ABI; NYSE: BUD), Group Modulo, S.A.B. de C.V. (BMV: GMODELOC), Constellation Brands, Inc. (NYSE: STZ, STZ.B) and Crown Imports LLC, have reached a final agreement with the U.S. Department of Justice on the terms of a settlement of the Department of Justice’s litigation challenging AB InBev’s proposed acquisition of the remaining stake in Group Modulo that it does not already own.

The parties have jointly approached the Court with the terms of a proposed Final Judgment, which would fully resolve the Department of Justice’s claims in its litigation challenging the proposed acquisition.

The agreement is substantially in line with the revised transaction announced on February 14, 2013. The proposed Final Judgment presented to the Court includes additional binding commitments to the revised transaction, which are designed to ensure a prompt divestiture of assets by AB InBev to Constellation, the necessary build-out of the Pederast Negros brewery by Constellation, as well as certain distribution guarantees for Constellation in the United States.

Once the Stipulation and Order (which is filed concurrently with, and requires the parties to comply with, the proposed Final Judgment) is signed by the Court, AB InBev, Group Modulo and Constellation intend to move swiftly to complete the pending transactions. These include an all-cash tender offer of USD 9.15 per share by AB InBev for all the outstanding Group Modulo shares it does not already own and, upon completion of the tender offer, the sale of Group Model’s Pederast Negros brewery and stake in Crown to Constellation.

The Mexican Competition Commission approved the revised transaction with Constellation in early April 2013. Therefore, once the Stipulation and Order is signed, all regulatory approvals necessary for closing the transactions with Group Modulo and Constellation will have been obtained. The transaction is expected to close in June 2013.
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