:. Food Industry News

Categories: Mergers and Acquisitions

Modelo CEO Unaware of InBev-Anheuser Talks

Source: Reuters
09/06/2008

Mexico City, Jun. 7 - Carlos Fernandez, the head of Mexico's top brewer Modelo, is somewhat incredulous that his phone isn't ringing off the hook.

Daily News Alerts

As chairman and CEO of Modelo, the maker of Corona beer, he is likely to be a critical figure in what may become the biggest consolidation of the global beer industry. But he says investors and bankers are not calling him with proposals.

"So far, no calls. Which actually I am amazed at. If the deal was pretty close, then I'd have some calls." Fernandez told Reuters in an interview.

Fernandez is not only chairman and CEO of Modelo, the world's No.7 brewer with a market capitalization of about $16 billion. He is also on the board at Anheuser-Busch Cos, the result of the top U.S. brewer's 50 percent stake in Modelo.

News reports in recent weeks that Belgium's InBev NV is about to bid $46 billion for Anheuser leave Fernandez, who started working at Modelo as a teenager and inherited the helm from his uncle in 1997, unmoved.

He says as far as he is concerned the talk of a deal is still nothing more than rumors, and he says he hasn't been told of any talks by Anheuser.

"If there are talks or not I am not really aware of it," Fernandez.

Fernandez said Modelo does not have any agreed option to buy Anheuser's 50 percent stake -- as a way of stopping itself being wedded to InBev in a deal -- though there are provisions for the U.S. brewer to consult it if it faces a takeover.

Modelo has a lot of options and will be examining them, he said. Asked whether he thought Modelo would retain its independence over the next year, he said, "Based on what we have seen today, yes."

INDEPENDENT?

Asked if the strategy was to remain independent, Fernandez said: "I can tell you today that we will continue working as we are working today, controlled by Mexicans, and going forward with our own strategy."

Fernandez also said that Anheuser hasn't called him to make any particular proposal. There is speculation in the market that Anheuser might seek to buy the rest of Modelo as a way of protecting itself against any hostile assault from InBev.

And, he says, consolidation of the industry could easily involve other major brewers.

Fernandez said that any consolidation in the industry was just as likely to involve SABMiller Plc or Danish brewer Carlsberg A/S as Anheuser and InBev.

"Who imagined a year ago that Miller and Coors were going to merge in the U.S. -- that was a play no one saw."

SABMiller won approval Thursday for its plan to combine its U.S. operations, the country's second largest, with No.3 Molson Coors Brewing Co.

Last October, SABMiller and Molson Coors said they would combine their U.S. operations to create a business that would have annual sales of $6.6 billion, to become the second-largest U.S. market player behind Anheuser.



GO   View more articles on this subject


More Alerts from 10/06/2008


Email This Article To A Colleague     Print A Copy Of This Page
 
 
 
 
FLEXNEWS - Business News for the Food Industry

About Us | Contact Us | Terms & Conditions | Privacy Policy
 
Daily News Alerts
Related Items
Mexico's Modelo Reserves Rights in Anheuser Bid
Mexico's Modelo Monitoring InBev Bid for Anheuser
Mexico's Modelo Should Warm to New Partner InBev
Mexico's Modelo Shares Soar After Bid for Anheuser
InBev-Anheuser Deal May Stir Up China Beer Boom
Grupo Modelo Appoints Anheuser-Busch as the Importer...
Anheuser-Busch Schedules Vote on InBev Takeover
InBev Shareholders Back Anheuser-Busch Takeover
InBev Confident of Completing Anheuser Deal despite...
InBev to Acquire Anheuser-Busch's 27% Stake in Tsingtao...

More in Food Industry News
Food Staple Prices to Weather Financial Storm
Safeway Third-Quarter Profit Rises
US Beer Industry Posts Second Consecutive Year of Case...
UK Supermarkets Turn up Heat on Specialist Retailers
Burger King to Open First Whopper Bar in February
New Zealand: Prolife Foods Acquires Cadbury's Mother...
Kraft Confirms 400 Jobs to Go in North America
Russian Retailer Magnit 9-mth Sales Rise 51 pct
Czech Authorities Impound Indian Guar Gum Batch Contaminated...
US: FDA Detects Melamine Contamination in Flavoured...

Top Headlines
Food Staple Prices to Weather Financial Storm
Safeway Third-Quarter Profit Rises
US Beer Industry Posts Second Consecutive Year of Case...
UK Supermarkets Turn up Heat on Specialist Retailers
New Zealand: Prolife Foods Acquires Cadbury's Mother...
Kraft Confirms 400 Jobs to Go in North America
Czech Authorities Impound Indian Guar Gum Batch Contaminated...
US: FDA Detects Melamine Contamination in Flavoured...
Colruyt Acquires 100% of the French SODEGER Group
Prosecutors Seek 13-yr Sentence for Parmalat Ex-CEO...
China Says Latest Testing on 75 Liquid Milk Brands...
USDA Economist Sees Slowdown in Food Inflation
Vietnam to Double Rice Exports in Q4 to Meet Target...
Northern Foods on Track to Meet Full-Year Forecasts
Anheuser-Busch Schedules Vote on InBev Takeover
Del Monte Foods Company Completes Sale of Seafood Business,...
Mrs Fields Gets Court Nod for Reorganization Plan
Wrigley Completes Merger with Mars
National Foods and Fonterra Announce Agreement on Ski...
Hungary: Melamine Detected in Chinese Restaurants and...
EU Approves Acquisition of Hercules by Ashland
Heineken Gets Irish OK for Beamish Buy; CEO Worried...
US Government Seeks US$195,000 Fine from Pepsi-Cola...
Iran Bans China Dairy Goods on Contamination Fears
Brenntag Enters Southeast Asia
Method for Preparing Xylitol with High Yield Using...


 


FLEXNEWS 2008 - All rights reserved
ISSN 1950-6228