US Justice Department Wants to Stop Budweiser-Corona Merger

Bud - Corona

The beer conglomerate behind some of America’s favorite suds, Anheuser-Busch InBev (ABI), is looking to purchase Grupo Modelo for $20.1 billion. Anheuser-Busch is responsible for the well-known Budweiser brands, Michelob, Shock Top, Beck’s, Busch, Rolling Rock, and many more household names across the country. Grupo Modelo produces the popular brew Corona. These two companies combined would hold approximately 46% of all beer sales making up the $80 billion total each year. The US Justice Department maintains that this amount of business owned  by one company would decrease the overall competition in the market space. With limited other options from beer distributors nationally, assistant attorney general Bill Baer believes that ABI would use this advantageous position to raise beer prices for United States consumers.

The justice department filed a federal  lawsuit to block the deal, and prevent ABI from owning and controlling one of its main competitors. The goal is to maintain competition in the US been industry, and keep beer prices low. ABI opposes this motion, and intends to actively contest the lawsuit in federal court.

Source courtesy of BBC. Image courtesy of The Washington Post.