Market Overview

Benzinga's M&A Chatter for Thursday January 31, 2013

The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday January 31, 2013:

DOJ Brings Suit to Block Sale of Grupo Modelo

The DOJ Suit:
The US Department of Justice is bringing suit in an attempt to block the sale of Grupo Modelo (OTC: GPMCY), owner of the Corona brand, to Anheuser-Busch InBev (NYSE: BUD), maker of Bud Light. Anheuser-Busch InBev had agreed to sell Modelo's stake in Crown Imports in order to get the deal done, but the Justice Department did not feel this was enough to protect customers. Grupo Modelo owns Crown Imports jointly with Constellation Brands (NYSE: STZ). Shares of all three companies fell sharply on the news.

Anheuser-Busch InBev and Constellation Brands both issued statements and indicated their dissatisfaction with the DOJ decision. Neither expects the deal to close in Q1 2013.

Anheuser-Busch InBev closed at $88.60 Thursday, a loss of 6% on 15 times average volume. Constellation Brands closed at $32.36 Thursday, a losss of 17% on 20 times average volume.

Scientific Games To Acquire WMS for $26/Share in Cash

The Deal:
Scientific Games Corporation (NASDAQ: SGMS) and WMS Industries (NYSE: WMS) announced Thursday that the companies have entered into a definitive agreement under which Scientific Games has agreed to acquire WMS for $26.00 in cash per common share or approximately $1.5 billion. The acquisition is expected to be completed by the end of 2013.

WMS Industries closed at $24.75 Thursday, a gain of 51% on 44 times average volume.

Posted-In: Long Ideas News Short Ideas Rumors Legal M&A Global After-Hours Center

 

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