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Constellation Brands Drops After DoJ Attempts to Block InBev's Purchase of Modelo

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Constellation Brands Drops After DoJ Attempts to Block InBev's Purchase of Modelo

Shares of Constellation Brands (NYSE: STZ) plummeted on Thursday after the U.S. Department of Justice said it would attempt to block InBev's (NYSE: BUD) purchase of Grupo Modelo.

Constellation Brands shares fell as much as 20 percent, before rallying back to some extent.

Many investors had speculated that Constellation could be a takeover target. With the DoJ preventing InBev's acquisition of Modelo, the possibility of that Constellation is acquired seems less likely.

In response, InBev vowed to fight the DoJ's action ā€œvigorously,ā€ stating that they viewed the DoJ's move as being inconsistent with the law.

For its part, InBev dropped almost 6 percent and Molson Coors (NYSE: TAP) fell over 1 percent.

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