Connect to share and comment
Belgium beer maker InBev has agreed to pay $20.1 billion for the rest of Mexico brewer Grupo Modelo that it doesn't already own.
GUADALAJARA, Mexico — Anheuser-Busch InBev NV, the maker of Budweiser, Stella Artois and Becks, has just added Mexican brands Corona, Modelo and Pacifico to its list of world famous beers.
According to the Associated Press, the combined company will have annual sales of $47 billion.
More from GlobalPost: World's oldest beer could be replicated, Finnish study finds
The deal gives the Belgium company greater access to fast-growing emerging markets as the economic downturn in the United States and Europe dampens demand for beer, Bloomberg reported.
“There is tremendous opportunity from combining two leading brand portfolios and further expanding Grupo Modelo’s brands worldwide,” AB InBev chief executive Carlos Brito said in the statement.
European companies now control most of Mexico’s beer market after Heineken purchased the brewing business of Fomento Economico Mexicano SAB in 2010.
Modelo controls nearly 56 percent of the Mexican beer market while Heineken, whose local brands including Dos Equis and Tecate, has around 41 percent.
Constellation Brands Inc, meanwhile, has agreed to buy Modelo’s stake in their US distribution joint venture Crown Imports for $1.85 billion, Reuters reported.
More from GlobalPost: How Mexico used banks to uplift the poor