Grupo Modelo SAD de CV is denying a report in Friday's Wall Street Journal that it wants to buy back part or all of the 50% stake Anheuser-Busch Cos. holds in Mexico's largest brewer. A Modelo spokesperson
told Reuters the report "is not true." This follows news in early October that Modelo, brewer of Corona, would
seek arbitration with A-B on the basis that it believes it has the right to approve any transfer of ownership of A-B's stake.
Now there are varying opinions on how exactly Modelo could influence
InBev SA's $50 billion deal to buy A-B. But what's certain is that Modelo's efforts have proved a major distraction at a time of great uncertainty in the global economy. A-B's partnership with Modelo dates back 15 years and gave the U.S. brewer of Budweiser and other brands a strong hold in one of the world's fastest-growing beer markets. The venture was also part of what attracted InBev to A-B. Modelo's maneuvering puts InBev chief executive Carlos Brito in the unenviable position of trying to fund and close his hard-fought multibillion dollar offer to buy A-B, while also trying to appease closely held Modelo.
It's no wonder so many dealmakers see joint ventures as necessary evils.
- Suzanne Stevens
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
