Market Overview

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 “vigorously,” 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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