Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Constellation Brands, Inc.    STZ

News SummaryMost relevantAll newsSector newsTweets 

Constellation Files Motion to Intervene in DOJ Suit

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

--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 nathalie.tadena@dowjones.com

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

share with twitter share with LinkedIn share with facebook
share via e-mail
03/14 MODELO® LAUNCHES ALL NEW SINGLE-SERV : Modelo Chelada Tamarindo Picante™
03/13 CONSTELLATION BRANDS : Modelo Especial and White Sox Announce Multiyear Partners..
03/13 CONSTELLATION BRANDS : Announces Enhanced Paid Leave for All Parents
03/13 SE REGRESARÁ 50% DE AGUA A LA TIERRA : Constellation Brands
03/09 CONSTELLATION BRANDS : to Report Fourth Quarter and Full Year Fiscal 2017 Financ..
03/08 CONSTELLATION BRANDS : Shares Sold by Metropolitan Life Insurance Co. Ny
03/06 S&P 500 ANALYST MOVES : Stz
03/02 CONSTELLATION BRANDS : Notificación a empresa cervecera se hizo ayer
03/02 CONSTELLATION BRANDS : Sin bloqueos se mantienen los accesos a AgroBaja
More news
Sector news : Wineries
03/16DJDIAGEO : Boosts Marketing Spend to Lift Flat Guinness Markets
02/28 France - Reasons to be bullish despite election stress
02/09 China, U.S. help Pernod beat estimates, India lags
02/09DJPERNOD RICARD : Profit Boosted By Asia Rebound, Jameson -- Update
02/01DJDIAGEO : Correction to Diageo Guinness Brewery Story
More sector news : Wineries
News from SeekingAlpha
03/21 A LOOK AT DISTILLERS : Brown Forman, Constellation Brands And Diageo In The Glob..
03/21 Food stocks in focus after latest research
03/15 A beer run for Amazon
02/27 Constellation Brands (STZ) Presents At Consumer Analyst Group of New York Con..
02/27 Game Plan For The Week - Cramer's Mad Money (2/24/17)
Financials ($)
Sales 2017 7 315 M
EBIT 2017 2 185 M
Net income 2017 1 392 M
Debt 2017 8 877 M
Yield 2017 0,97%
P/E ratio 2017 24,28
P/E ratio 2018 21,93
EV / Sales 2017 5,60x
EV / Sales 2018 5,34x
Capitalization 32 103 M
More Financials
Duration : Period :
Constellation Brands, Inc. Technical Analysis Chart | STZ | US21036P1084 | 4-Traders
Full-screen chart
Technical analysis trends CONSTELLATION BRA...
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 177 $
Spread / Average Target 7,7%
Consensus details
EPS Revisions
More Estimates Revisions
Robert S. Sands President, Chief Executive Officer & Director
Richard E. Sands Chairman
William A. Newlands Chief Operating Officer & Executive Vice President
David Eric Klein Chief Financial Officer & Executive Vice President
Joseph D. Bruhin Chief Information Officer & Senior Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
WULIANGYE YIBIN CO., ..--.--%24 226
LT GROUP INC--.--%3 222
More Results