Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Justice Department, Brewers Have Reached “Agreement in Principle,” Seek Extension of Stay, (Apr 8, 2013)

By Jeffrey May, J.D.

The Department of Justice Antitrust Division, Anheuser-Busch InBev (ABI), and Grupo Modelo have once again asked the federal district court in Washington, D.C. to stay proceedings in the Justice Department’s civil suit against the beer companies over their proposed combination. The present stay expires April 9. In their April 5 filing, the parties asked for an extension through April 23.

The stay will provide time for the Justice Department to "finalize the details of a proposed consent judgment" resolving the Justice Department’s concerns regarding ABI’s acquisition of the 50 percent of Modelo that it does not already own. According to the parties, they have "reached an agreement in principle on a resolution of this litigation." The parties said that they expected this to be their final request to extend the stay.

On January 31, 2013, the Department of Justice Antitrust Division filed a civil antitrust complaint in the federal district court in Washington, D.C. challenging ABI’s proposed acquisition of total ownership and control of Corona brewer Grupo Modelo. On February 22, the court granted the parties’ joint motion for a stay of the proceedings through March 19 to allow the government to consider ABI's February 14 offer to resolve U.S. antitrust concerns. As the stay was about to expire, the parties sought, and were granted on March 20, an extension through April 9.

According to a statement issued by ABI on April 5, the "proposed resolution is substantially in line with the revised transaction announced on February 14, 2013." ABI reiterated that the parties had reached an agreement in principle and that they expected for this to be their final request to extend the stay.

The case is U.S. v. Anheuser-Busch InBEV SA/NV, Civil Action No. 13:127 (RWR).

Attorneys: Michelle R. Seltzer, U.S. Department of Justice, for plaintiff. Steven C. Sunshine (Skadden, Arps, Slate, Meagher & Flom LLP) for Anheuser-Busch InBev SA/NV. Richard J. Stark (Cravath, Swain & Moore LLP) for Grupo Modelo S.A.B. de C.V.

Companies: Anheuser-Busch InBev SA/NV; Grupo Modelo S.A.B. de C.V.

News: Antitrust AntitrustDivisionNews