Grupo Modelo SAB rose the most in seven months after Anheuser-Busch InBev reached a revised agreement with Constellation Brands Inc. to allay antitrust concern on its bid to buy the Mexican brewer.
Modelo’s stock jumped (GMODELOC:US) 4.5 percent to 113.70 pesos at 1:54 p.m. in Mexico City trading, the biggest increase on a closing basis since June 25. The benchmark IPC index fell 0.3 percent.
AB InBev agreed to sell the Piedras Negras brewery and grant perpetual rights to Constellation for the Corona and Modelo brands in the U.S. The revised agreement is an effort to address the concern of the U.S. Department of Justice, which filed an antitrust suit against AB InBev to stop the acquisition.
“We believe that after this announcement, the probabilities that the transaction will be completed have increased, as Anheuser-Busch is tackling the DOJ’s main concern,” analysts led by Karla Miranda at Grupo Bursatil Mexicano wrote in a report today.
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