News Summary: Constellation shares sink over suitJanuary 31, 2013 @ 9:38 am
(AP) - THE TRIGGER: Shares of Constellation Brands fell after the Justice Department sued to block Anheuser-Busch InBev's proposed purchase of Mexican brewer Grupo Modelo, which the government said could lead to higher beer prices for Americans.
THE BACKGROUND: It hurts Constellation's related $1.85 billion deal that would give it greater U.S. control of Corona and other beers. Constellation was to buy the remaining half of a joint venture with Grupo Modelo.
THE ISSUE: The government noted that Anheuser-Busch InBev could end a deal to supply Modelo brands to Constellation after 10 years and retain the Modelo brands and its brewing facilities.
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