Modelo Balks at Anheuser-Busch Merger

Mexico’s Grupo Modelo has initiated an arbitration process against Anheuser-Busch and subsidiaries because it was not consulted about a merger with InBev. “The investment agreement . . . forbids Anheuser-Busch from doing anything that could result in the transfer of its shares in Modelo and [subsidiary] Diblo to a competitor in the beer business,” Modelo says in a statement. “The agreement also states that Anheuser-Busch can’t do anything that results in the transfer of shares in Modelo and Diblo without previously offering the shares to Modelo’s majority shareholders,” it adds. Anheuser-Busch responds by saying that the claims made are without merit and that it expects the arbitration will not impact the completion of the merger, which is expected to close by the end of the year. Anheuser-Busch owns 50% of Modelo. JPMorgan and Deutsche are advising Inbev. Goldman Sachs and Citi are advising Anheuser-Busch.