This Week
  • CFO David Klein is leader of the financial team at Constellation Brands.

  • CEO Eric Converse has VirtualScopics on the verge of generating cash.

  • MaeTec Power Inc. began as a part-time operation in 2003.

  • Renovations of buildings downtown are helping to give new life to the center city.

  • Mirror Show Management grabbed the top spot on the 2015 Rochester Top 100.

  • Liz Madison is bringing the farm to doorsteps across Wayne and Monroe counties.

Constellation shares plunge after Justice Department decision

Rochester Business Journal
January 31, 2013

Constellation Brands Inc.’s plans to acquire the remaining half of its Crown Imports LLC joint venture in a $1.85 billion deal have been put on hold due to a lawsuit announced Thursday by the U.S. Justice Department.

Shares of Constellation Brands (NYSE: STZ) plunged following the news. Shares were trading midday near $32.30, down 17.5 percent from Wednesday’s close of $39.17. It fell to as low as $28.39, down more than 25 percent, on Thursday before regaining ground. The stock had hit a 52-week high this week.

The suit seeks to stop Anheuser-Busch InBev SA from buying the half of Mexican brewer Grupo Modelo it does not already own, saying the $20.1 billion deal would lessen competition in the U.S. beer market.

Last year, Constellation Brands announced the Crown Imports deal with Anheuser-Busch, which would give Constellation total control of distribution of popular Corona beers, among other products, in the United States.

Constellation Brands owns half of Crown Imports, a 50-50 joint venture with Grupo Modelo. Constellation signed a definitive agreement with AB InBev to purchase the remaining interest as AB InBev completes its proposed acquisition of Modelo.

The Victor firm had expected the deal to close this quarter, but no longer does given the Justice Department action.

Constellation Brands said it was disappointed with the Department of Justice’s decision.
“The proposed transaction would further establish Crown Imports as a more independent and competitive entity and solidify its position as a major player in the U.S. beer industry,” the company said in a statement.

 (c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail

What You're Saying 

There are no comments yet. Be the first to add yours!

Post Your Own Comment


Not registered? Sign up now!

To Do   Text Size
Post CommentPost A Comment eMail Size1
View CommentsView All Comments PrintPrint Size2
ReprintsReprints Size3
  • E-mailed
  • Commented
  • Viewed
RBJ   Google