Another giant step in global consolidation of beer industry
Heineken said today that it plans to buy the beer operations of Femsa, the maker of Dos Equis, further consolidating the global brewing industry.
The deal cements Heineken’s position as the world’s second-largest brewer by sales after Anheuser-Busch InBev of Belgium. In Mexico, Femsa is the second-largest brewer behind Grupo Modelo, the maker of Corona Extra, the top import brand in the United States. A-B InBev owns half of Grupo Modelo and wants to buy the rest. The strengthened competition from Femsa and Heineken could finally convince Modelo shareholders to drop their resistance to what many analysts expect will become inevitable — a complete sellout to A-B InBev.
Modelo filed for arbitration in 2008 after InBev bought St. Louis-based A-B for $52 billion. Modelo is asking for $2.5 billion in the New York-based arbitration case, saying A-B failed to consult with it about the takeover.
Last month, Modelo’s former chief financial officer said the Mexican brewer would likely lose the arbitration.