MEXICO CITY (BNO NEWS) — Belgium’s Anheuser-Busch InBev has agreed to acquire Mexico’s Grupo Modelo, the parent company of Corona beer, for approximately $ 20.1 billion, both companies announced on Friday.
With the acquisition, the combined company is expected to have revenues of roughly $ 47 billion in the current year, placing itself as a global leader in the bear industry with approximately 400 million hectoliters (10.5 billion gallons) of beer volume annually and operations in 24 different countries.
Anheuser-Busch InBev will acquire the remaining stake in Grupo Modelo that it does not already own for $ 9.15 per share in cash, a tender price which represents a premium of approximately 30 percent to the closing price of Grupo Modelo series C shares on June 22.
“There is tremendous opportunity from combining two leading brand portfolios and further expanding Grupo Modelo’s brands worldwide through AB InBev’s extensive global distribution network,” Anheuser-Busch InBev CEO Carlos Brito said. “Our admiration for Grupo Modelo’s business and brands has only increased with time and we look forward to joining our historic and world-class breweries.”
Corona will now become a global flagship brand alongside Budweiser and other global brands such as Stella Artois and Beck’s. However, the companies announced that Grupo Modelo’s name, identity, heritage and headquarters in Mexico City will be maintained, and the company will continue to have a local board.