Reuters: Regulatory News: UPDATE 1-Constellation attacks DOJ reasoning in move to block Modelo deal

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Constellation attacks DOJ reasoning in move to block Modelo deal Feb 1st 2013, 15:13 Tweet Share this Email Print Related Topics Stocks » Regulatory News » M&A » Markets » Non-Cyclical Consumer Goods » Fri Feb 1, 2013 10:13am EST Feb 1 (Reuters) - Constellation Brands Inc on Friday attacked the U.S. government's move to block Anheuser-Busch InBev's proposed $20.1 billion takeover of Mexican brewer Grupo Modelo. Constellation, which would become the sole U.S. distributor of Modelo beers like Corona and Negra Modelo through a related $1.85 billion transaction, said Thursday's action by the Department of Justice "demonstrates its incomplete understanding of the proposed transaction." The U.S. Department of Justice is moving to block AB InBev, the world's biggest brewer, from buying the half of Modelo it does not already own, saying the combination would hinder competition and lead to higher beer prices. Constellation said the DOJ has "overlooked the existence and commercial activities" of Crown Imports, the U.S. seller of Modelo's beers. Crown is currently owned by Modelo and Constellation, but Constellation plans to take Crown over if Modelo gets taken over. Constellation claims that competition will actually improve if it takes over Crown, since it will not be part owned by its supplier. Constellation shares were up 2 percent at $33.05 in morning trade on the New York Stock Exchange. Shares of AB InBev were up 4 percent at 66.52 euros in Brussels. Non-Cyclical Consumer Goods Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions