We’re almost at the finish line with Anheuser-Busch InBev’s (Ticker:
BUD) acquisition
of Grupo Modelo SAB. As you probably know, Constellation Brands, Inc. (Ticker:
STZ) stands to
gain a brewery and licensing rights to several Modelo brands such as Corona making it the 3
rd largest brewery in the
US.
Constellation Brands will gain all this goody in return for the DOJ’s blessing
in allowing Anheuser-Bush to acquire Grupo Modelo. Yesterday, Anheuser-Busch
and Constellation Brands announced that they have reached an agreement in
principle with the DOJ. It looks like they are just dotting the”i’s” and
crossing the “t’s”. According to the press release, this should be finalized by
April 23
rd. The DOJ is basically guaranteeing the success of
Constellation Brands after the completion of the merger. I plan on holding onto
Constellation Brands (~ 25% of my portfolio) for a while as I see very nice
growth for this company. I’ve also been writing the April 40 and 42.50 puts on
Constellation Brands to collect some premium along the way.