GRUPO MODELO: TROUBLE BREWING IN THE GLOBAL BEER INDUSTRY
GRUPO MODELO: TROUBLE BREWING IN THE GLOBAL BEER INDUSTRY
13 Pages1 May 17, 2010 GRUPO MODELO: TROUBLE BREWING IN THE GLOBAL BEER INDUSTRY 1 Carlos Fernandez, Chairman and CEO of Grupo Modelo S.A. de C.V., sat back and stared at the silent telephone in his office in Mexico City. It was June 13, 2008, and Fernandez had just finished a call with August Busch IV, the CEO of Anheuser-Busch (A-B), the iconic North American brewery that owned 50.2% of Modelo’s shares. A-B had recently received a takeover offer from industry giant InBev, and Busch feared that the shareholders would accept it, ending A-B’s 150-year history as an independent company. Ever since InBev made its move for A-B, Busch IV had been hinting at making Modelo an offer for its remaining shares, thus making the Mexican brewer a wholly-owned subsidiary
