UPDATE: Societe Generale Upgrades Anheuser-Busch InBev to Buy; Modelo Deal Back On
Societe Generale upgraded Anheuser-Busch InBev (NYSE: BUD) from Hold to Buy.
Societe Generale noted, "ABI has agreed with Modelo and Constellation a scheme that should satisfy the US DOJ, which had blocked the deal. Under the agreement, Modelo will sell the Coahuila brewery in Mexico that produces Modelo beer for export to the US to Constellation, and with it the perpetual rights to the brands, for a total price of $2.9bn. This is precisely the deal we thought would be needed to avoid the antitrust issues (we valued the transaction at $2.7bn), but it has been agreed far more quickly than we expected."
Anheuser-Busch InBev closed at $88.26 on Wednesday.
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Tags: Societe Generale