Three-Part Diagram: Beer Merger - U.S. Competition Before and After
The image illustrates that before the merger, there were two competitors in the U.S. beer industry, Modelo and ABI, and ABI owned a substantial stake in Modelo. The companies’ proposed merger would have reduced that to ABI only. The proposed settlement announced today will create an independent, fully integrated, and economically viable competitor to ABI. The image is a diagram in three parts. The first part illustrates that, premerger, ABI held a substantial stake in Modelo, and that Modelo utilized a joint venture between itself and CBI as its U.S. importer for the Modelo beer brands. The second part illustrates that, under the original ABI proposal, ABI would have owned and controlled Modelo, and ABI would have used CBI as its U.S. importer for the Modelo beer brands. The third part illustrates that, under the proposed Final Judgment, ABI and CBI will be independent competitors.
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