Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Constellation Brands    STZ

CONSTELLATION BRANDS (STZ)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Constellation Files Motion to Intervene in DOJ Suit

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/08/2013 | 10:51pm CEST

--Motion seeks to permit Constellation and Crown to have direct access to legal proceedings

--Constellation says it believes the deals are good for beer consumers

--Anheuser-Busch InBev confirmed it filed a memorandum in support of Constellation and Crown's motion to intervene in the case

(Updates with comment from Anheuser-Busch InBev in second-to-last paragraph.)

 
   By Nathalie Tadena 
 

Constellation Brands Inc. (STZ, STZB) has filed a motion to intervene in the Department of Justice's lawsuit to block Anheuser-Busch InBev's (ABI.BT, BUD) $20.1 billion bid to buy Grupo Modelo (GMODELO.MX, GPMCY), as the wine-and-spirits maker is set to expand as part of a side deal in the proposed merger.

Last week, the U.S. government sued to block Bud Light and Budweiser maker InBev's deal with Grupo Modelo, the Mexican company that owns the Corona brand. U.S. authorities said they want to stop the global giants that dominate mass-market brews from overcharging millions of U.S. consumers.

Constellation and Crown Imports LLC, Constellation's joint venture with Modelo, weren't named in the DOJ's complaint, but the lawsuit directly affects both companies, they said. The motion seeks to permit Constellation and Crown to have direct access to the legal proceedings.

Constellation had agreed to buy out the Mexican brewer's stake in Crown Imports LLC for $1.85 billion. Crown was the two companies' evenly split joint venture that supplies the U.S. with Grupo Modelo beers such as Modelo and Corona. Constellation's role in the deal was InBev's attempt to alleviate some antitrust concerns, a bid to bolster a rival's position to take some pressure off InBev's dominant market-leading position. The planned deal would have doubled Constellation's annual revenue and given it more control of beers like Modelo Especial and Corona, which have outperformed the U.S. market.

Friday, Constellation said it believes the deals are good for beer consumers as Crown would be a stronger competitor in the U.S. Under the proposed deal, Crown would be wholly owned by Constellation, and InBev wouldn't sell Corona or the Modelo brands in the U.S. and would have no influence over Crown.

Constellation said Crown is the third-largest beer company in the U.S. and is guaranteed supply of a certain number of new products each year upon request. The company said the proposed deals don't increase concentration in the U.S. beer market; Constellation and Crown would compete more effectively in the future due to more favorable supply terms than previously existed, Constellation said. The company noted through a revised supply agreement, Crown is protected from interference from its supplier, and the cost of beer purchased is based on a formula that adjusts annually at a rate below the U.S. consumer price index.

Anheuser-Busch InBev confirmed it filed a memorandum in support of Constellation and Crown's motion to intervene in the case. The company said its memorandum also explains the proper legal standard for the DOJ's case requires evaluation of the net effect of the two proposed deal, which it said is a more effective and competitive Crown.

Class A shares of Constellation shares were unchanged in recent after hours trading after closing up 0.8% at $31.85. The stock is down 8.6% over the past three months.

Write to Nathalie Tadena at [email protected]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stocks mentioned in the article
ChangeLast1st jan.
CONSTELLATION BRANDS -0.07% 216.81 Delayed Quote.-5.15%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CONSTELLATION BRANDS
05/24Constellation Brands to Present at the RBC 2018 Consumer and Retail Conferenc..
GL
05/24CONSTELLATION BRANDS : Promotes Jim Sabia to Newly Created Role of Chief Marketi..
AQ
05/24CONSTELLATION BRANDS : Promotes Jim Sabia to Newly Created Role of Chief Marketi..
AQ
05/24CONSTELLATION BRANDS : Champagne Palmer & Co Entrusts TRU Estates and Vineyards,..
AQ
05/23CONSTELLATION BRANDS : Promotes Jim Sabia to Newly Created Role of Chief Marketi..
AQ
05/22CONSTELLATION BRANDS, INC. : Regulation FD Disclosure, Other Events, Financial S..
AQ
05/22CONSTELLATION BRANDS : Promotes Jim Sabia to Newly Created Role of Chief Marketi..
GL
05/22CONSTELLATION BRANDS : Makes 2018 FORTUNE 500 List
AQ
05/10CONSTELLATION BRANDS : First look at Ballast Point Brewpub, opening Tuesday, rev..
AQ
05/09CONSTELLATION BRANDS : Ex-dividend day for
FA
More news
News from SeekingAlpha
05/25Tracking Stephen Mandel's Lone Pine Capital Portfolio - Q1 2018 Update 
05/23Constellation Brands creates CMO position 
05/22Tracking Dan Loeb's Third Point Portfolio - Q1 2018 Update 
05/18Is The Economy Overheating? - Cramer's Mad Money (5/17/18) 
05/16Morgan Stanley selects 30 stocks for a three-year sideways market 
Financials ($)
Sales 2019 8 147 M
EBIT 2019 2 711 M
Net income 2019 1 916 M
Debt 2019 9 942 M
Yield 2019 1,36%
P/E ratio 2019 22,28
P/E ratio 2020 19,98
EV / Sales 2019 6,31x
EV / Sales 2020 5,91x
Capitalization 41 464 M
Chart CONSTELLATION BRANDS
Duration : Period :
Constellation Brands Technical Analysis Chart | STZ | US21036P1084 | 4-Traders
Technical analysis trends CONSTELLATION BRANDS
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 254 $
Spread / Average Target 17%
EPS Revisions
Managers
NameTitle
Robert S. Sands Chief Executive Officer & Director
William A. Newlands President & Chief Operating Officer
Richard E. Sands Chairman
David Eric Klein Chief Financial Officer & Executive Vice President
Joseph D. Bruhin Chief Information Officer & Senior Vice President
Sector and Competitors
1st jan.Capitalization (M$)
CONSTELLATION BRANDS-5.15%41 464
WULIANGYE YIBIN CO., LTD.--.--%45 132
JIANGSU YANGHE BREWERY JSC LTD.--.--%30 422
LUZHOU LAOJIAO CO LTD--.--%15 140
TREASURY WINE ESTATES LTD4.51%9 053
LT GROUP INC--.--%4 393