Anheuser-Busch Merger Deal Clears an Antitrust Hurdle

The government has implemented multiple regulations on businesses to prevent the creation of monopolies in the past. For example, the Justice Department sued AT&T so that this mobile-network company would not be able to take over T-Mobile USA for $39 billion last year. Similarly, the Justice Department sued Anheuser-Busch InBev when this American brewing company tried to buy Grupo Modelo, the maker of Corona, for $20.1 billion. These two brewing companies make up 46% of beer sales in the United States. The government fears that the takeover of one company would give the other too much power within the industry. Anheuser-Busch sees this deal as a vital step to expand their market. Therefore, they made a deal with the Justice Department to sell 50% of Crown Imports, Corona’s importing company, to Constellation Brands for $2.9 million.

Anheuser-Busch would have less control over the company, but they would still be able to expand their markets in Mexico and other Latin American countries. It appears that Obama’s administration is careful about letting companies merge within each industry. There also seems to be a growing fear of companies with big market shares after the financial crisis of 2008.

 

Written By: Melody Mark

Source: De La Merced, Michael J. “Anheuser-Busch Merger Deal Clears an Antitrust Hurdle.” New York Times (blog). The New York Times Company, 5 Apr. 2013. Web. 6 Apr. 2013.

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