Looking to grab some Latin American market access, Dutch brewer Heineken NV said Monday it will buy the beer-making operations of Mexico’s Femsa in an all-share deal that values the maker of Dos Equis, Tecate and Sol beers at $5.5 billion, excluding debt.
So what does this mean for A-B InBev, which owns a 50% stake in Mexican brewer Grupo Modelo, maker of Corona?
A-B InBev and Grupo currently are caught in a $2.5 billion arbitration case, with Grupo claiming it wasn’t asked to give its blessing to the blockbuster deal that created A-B InBev. A decision in the arbitration case is expected soon.
But might this deal have Grupo re-thinking its push against A-B InBev?
At least, A-B InBev can find solace in the fact that SABMiller didn’t win the bid for Femsa’s hand.
And the markets seem to think A-B InBev will be fine – ABI shares on the Brussels exchange stood at 35.40 Euro, up .24% from the opening. On the NYSE, BUD shares (tied to the ABI share price) were up 1.12% at $51.52 early today.
And for those of you unfamiliar with the Dos Equis ad campaign