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Empresas y finanzas

Modelo says in talks with Anheuser-Busch InBev


    By Philip Blenkinsop and David Jones

    BRUSSELS/LONDON (Reuters) - The combination of Mexico's growing beer market, big cost savings and control of Corona beer exports have sparked Anheuser-Busch InBev's interest in a buyout of Grupo Modelo , but the Mexican brewer sounded cautious on Monday.

    Family-controlled Modelo confirmed Monday it was in talks about expanding a relationship with the Belgian brewing giant, but said in a statement it would be premature to speculate on any outcome of the talks.

    A deal would give Anheuser-Busch InBev, the world's largest brewer, access to 2 percent to 3 percent annual growth in the Mexican market and win distribution rights to Corona, the largest U.S. imported beer brand.

    AB InBev, the brewer of Budweiser and Stella Artois, already owns a 50.4 percent stake in Modelo and is discussing buying the rest from the controlling Modelo families, who have 56 percent of the shareholder voting power, people familiar with the talks said.

    Mexico is the world's sixth biggest beer market and the fourth most profitable, and is a virtual duopoly between Modelo and Heineken . Analysts said it would be a good strategic deal for AB InBev.

    "We believe a take-out price would be closer to $15 billion, equating to a 30 percent control premium in line with historic average brewing premiums," said analysts at Citi.

    Still, AB InBev must win the approval of the close-knit group of Modelo shareholders, many of whom are related to the company's founders, who control the company.

    Banking sources said the two sides were in intensive talks, but the sticking point was the size of the premium the Modelo families can extract from AB InBev.

    "The families are willing to sell but they want a big price as they see a big boost for AB InBev from owning 100 percent of Modelo," said one banker close to the talks.

    Modelo shares rose nearly 15 percent on Mexico's stock exchange. The exchange earlier suspended trading in the shares, after they soared in early trading.

    (Additional reporting by Elinor Comlay in Mexico City; editing by Anna Willard and Jeffrey Benkoe)