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Beer shakeup: Constellation Brands (STZ -24.2%) dives after the DOJ files suit against...

Beer shakeup: Constellation Brands (STZ -24.2%) dives after the DOJ files suit against Anheuser-Busch InBev (BUD -5.1%) to block its takeover of Grupo Modelo. A no-go on the A-B deal is bad for Constellation Brands because it was all set to export Modelo to the U.S. so that the deal might be more palatable to regulators. According to the Nasdaq website, STZ is currently halted for hitting a volatility level.
Comments (7)
  • Chris DeMuth Jr.
    , contributor
    Comments (4093) | Send Message
     
    This suit has been long in coming. It will be interesting to watch if it goes to litigation.
    31 Jan 2013, 10:53 AM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (540) | Send Message
     
    Bad for Constellation Brands. Even worse for risk-arbs.
    31 Jan 2013, 11:04 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4093) | Send Message
     
    Mostly right, but certainly some were long and others short.
    31 Jan 2013, 11:06 AM Reply Like
  • Quoth the Raven
    , contributor
    Comments (2070) | Send Message
     
    Even worse for beer drinkers.
    31 Jan 2013, 07:52 PM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    Worse for beer drinkers? How so?

     

    In-Bev has been buying beer brands, hand over fist. Only to take those brands and kill them with cost cutting.

     

    Bass Ale and Becks are now no longer even imported, and produced in the US to much lower standards.

     

    I, of all people am the last person to approve of Gov't intervention in free markets. But In-Bev needs to be contained at this point.

     

    Their market share has been approaching near monopoly levels.

     

    Once in a while, Gov't does something good.

     

    This is one of such rare instances.
    5 Feb 2013, 02:43 PM Reply Like
  • flemsnopes
    , contributor
    Comments (124) | Send Message
     
    Soooo....... that 60 foot section of all those enticing small brewery beer brands I see at the local grocery store is not really competition? Who knew? We should all fall to our knees and thank God for the business experts at the DOJ!
    5 Feb 2013, 12:36 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4093) | Send Message
     
    Apparently, such things exist: http://bit.ly/Wsh80N
    5 Feb 2013, 01:23 PM Reply Like
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