The Dow Jones Industrial Average and Standard & Poor’s 500 index were both off about 0.4% in early trading Thursday.
No such concerns for Constellation Brands (STZ), however, which saw its share price leap 37% on news that it would gain the perpetual rights for the Corona and Modelo brands in the US in a reworked deal with Anheuser-Busch InBev (BUD) to address Justice Department concerns.
Under the original terms of the deal, AB InBev had an option to buy the U.S. rights for all Modelo brands after 10 years. AB InBev had previously said it would sell Modelo’s half stake in [beer importer and distributor] Crown to Constellation, but regulators said the arrangement wasn’t satisfactory because Constellation would still rely on AB InBev for its beer supply.
Anheuser-Busch’s stock is up 6%.
Another big gainer this morning is HJ Heinz (HNZ), rising 19.9% after Berkshire Hathaway and 3G Capital agreed to buy the packaged-food maker for $72.50 a share. The deal has had a positive effect on some of Heinz’s rivals who could also be acquisition targets: Post Holdings (POST) and Campbell Soup (CPB) are up about 3% while General� Mills (GIS) is up about 2.3%.
No comments :
Post a Comment