Thursday, January 31, 2013
There they go again
In a move designed to fool everybody into thinking they are actually doing their jobs the Dept. Of Justice is moving to block the merger of Anheuser-Busch InBev and Grupo Modelo of Mexico, thereby denying Americans their right to weak watered down beers imported and domestic.
The Justice Department sued on Thursday to block Anheuser-Busch InBev’s proposed $20.1 billion deal to buy control of Grupo Modelo of Mexico, arguing that the merger would significantly reduce competition in the American beer market.The DoJ knows two things. The first is that the purpose of the merger is to reduce competition and increase prices. The second is putting up a good show before giving into what Big Beer wants will fool most Americans and double their available weak watered down beer sources. Open up another one while you can afford it and maybe enjoy it.
The deal, announced last summer, would add Corona Extra to the company’s formidable stable of brands, including Budweiser and Stella Artois.
But the Justice Department said in its lawsuit, filed in Federal District Court in Washington, that allowing the merger to proceed would reduce competition in the beer industry across the country as a whole and in 26 metropolitan areas in particular. The combined company would control about 46 percent of annual sales in the country, the government said, far outpacing Anheuser-Busch InBev’s closest competitor, MillerCoors.
“If ABI fully owned and controlled Modelo, ABI would be able to increase beer prices to American consumers,” William J. Baer, head of the Justice Department’s antitrust division, said in a statement. “This lawsuit seeks to prevent ABI from eliminating Modelo as an important competitive force in the beer industry.”
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