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DOJ sues to block beer merger

The agency argues that the deal between Anheuser Busch InBev and Grupo Modelo would lead to increased beer prices for consumers

The Department of Justice (DOJ) sued on Thursday to prevent Anheuser Busch InBev’s proposed $20.1 billion acquisition of Grupo Modelo, which exports Corona beer.

Federal authorities say that the deal would lead to higher prices for consumers, arguing in court filings that Modelo has historically put pressure on AB InBev, which produces Budweiser and other beers, to keep prices lower by refusing to raise its own prices. The DOJ specifically cited internal InBev documents in which company employees described Modelo’s tactics as “eating [Budweiser’s] lunch.”

Alanna Byrne

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