Anheuser-Busch, Grupo Modelo close agreement increasing A-B holdings in Mexican brewer and its subsidiaries.ST. LOUIS and MEXICO CITY--(BUSINESS WIRE)--May 22, 1997-- Anheuser-Busch Companies, Inc. (NYSE NYSE See: New York Stock Exchange :BUD) and Grupo Modelo Grupo Modelo is a large brewery in Mexico. It maintains a large part of the Mexican beer export market and produces top-selling imported beer in the United Kingdom, United States and Canada. , S.A. de C.V. have consummated an agreement that increases Anheuser-Busch's direct and indirect ownership of the Mexican brewer and its subsidiaries to 37 percent, it was announced today. Under the agreement, Anheuser-Busch has invested an additional $605 million, bringing its total investment in Mexico's largest beer company to more than $1 billion. In 1993, Anheuser-Busch acquired a 17.7 percent direct and indirect interest in Grupo Modelo and its subsidiary, Diblo, S.A. de C.V. for $477 million. At that time, Anheuser-Busch obtained options to increase its investment between mid-1995 and the end of 1997, with the right to increase its ownership to 50.2 percent direct and indirect interest in Modelo and Diblo. In December 1996, Anheuser-Busch announced its intention to go to the 37 percent direct and indirect ownership level and yesterday, the Anheuser-Busch Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the exercise of the remaining options before the end of the year, but the timing and option exercise price has not been determined. "Our taking a larger stake in Modelo is advantageous for both companies," said Anheuser-Busch Chairman of the Board and President August A. Busch III. "Grupo Modelo is a well-managed company with a great heritage. Mexico is a key market in our overall approach to globalizing our company. There is great potential in the Mexican beer Beer in Mexico has a long history. Fermented beverages long predate the arrival of European conquistadors in America. Beer in the European style became mass produced in the 19th century, and continues to be popular today. market. Our association with Modelo will help grow that market and enhance our already strong relationship with the Mexican-American community." "Grupo Modelo and Anheuser-Busch will benefit from this strategic alliance for many years to come," said Antonino Fernandez R., chairman and president of Grupo Modelo. "Our company plans to continue to serve its loyal customers while expanding in Mexico, throughout Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and in other parts of the world." The investment closed today gives Anheuser-Busch additional minority rights. The number of seats Anheuser-Busch holds on the Modelo Board of Directors will rise to 10 from the current three. The total number of seats on the Modelo board will climb to 21 from 14. Today's agreement was expected to be closed earlier this year, but was delayed because of continuing discussions over certain purchase price adjustments. The settlement represents a final agreement on the purchase price adjustments. "Our executives have worked closely together to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... this arrangement and have reached an agreement that is satisfactory to both parties," Busch said. He credited Modelo Chief Executive Officer Carlos Fernandez G., a member of the Anheuser-Busch Board of Directors, with working hard to bring the two companies together. "Carlos's leadership ability is one of the reasons we are excited about Modelo's future," Busch said. Modelo holds more than 57 percent of the Mexican beer market through sales of Corona Corona, city, United States Corona (kərō`nə), city (1990 pop. 76,095), Riverside co., S Calif.; inc. 1896. The city developed as a primary citrus fruit producer and shipping center. There is also light manufacturing. , Modelo Especial es·pe·cial adj. 1. Of special importance or significance; exceptional: an occasion of especial joy. 2. , Pacifico, Negra Modelo Negra Modelo, brewed by Grupo Modelo, is a Vienna lager first brewed in Mexico by Austrian immigrants. It was first sold on draft in 1926. Negra Modelo comes in an unusually shaped, wide brown bottle with a trademark Gold Label. and other regional brands, brewed at its eight breweries in Mexico. It exports its beers to 124 countries in North and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Asia, Australia, Europe and Africa, accounting for more than 70 percent of the beer exported from Mexico. Modelo is the exclusive importer and distributor of Budweiser and other Anheuser-Busch brands in Mexico, which are the top-selling imported beers in the country. Anheuser-Busch, with headquarters in St. Louis, Missouri, sold 91.1 million barrels of beer in 1996. It is the world's largest brewer, holding a 45 percent market share in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . It brews more than 30 products, including Budweiser, the world's best- selling beer. Anheuser-Busch International, Inc., is a subsidiary of Anheuser- Busch Companies, Inc. responsible for the company's foreign beer operations, including exploring and developing beer markets outside the United States. Its operations include breweries in China and Great Britain Great Britain, officially United Kingdom of Great Britain and Northern Ireland, constitutional monarchy (2005 est. pop. 60,441,000), 94,226 sq mi (244,044 sq km), on the British Isles, off W Europe. The country is often referred to simply as Britain. ; contract and license brewing; exports; sales, marketing and distribution of the company's beers in foreign markets and establishing partnerships with leading foreign brewers. CONTACT: Anheuser-Busch Companies, Inc. Paul Wagman or Terri Vogt, 314/982-1700 |
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