Anheuser-Busch, brewer of Budweiser, has been looking to buy Mexican brewer Grupo Modelo for $20.1 billion, giving them ownership of brands like Corona, Pacifico and Negro Modelo. But yesterday, the Justice Department sued to stop the merger, saying it would lead to an unfair market share for Anheuser-Busch and possible higher beer prices for consumers.
It's estimated that if the deal went through, Anheuser-Busch would control 46% -- almost half -- of the country's beer sales. To put it in perspective, MillerCoors, the second-largest beer company, controls 29% of nationwide sales. It kind of gives new, foreboding meaning to the phrase "king of beers."
The Justice Department said that, particularly in 26 metro areas, the merger would make for very little market competition. Think about it: how many gas stations basically only sell Budweiser and Corona? That's the breakdown of choices in many supermarkets in less beer-savvy markets.
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