Feds put big beer merger on ice

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Anheuser-Busch consistently raises beer prices, and Miller usually follows suit, according to the Justice Department, but Modelo is the one company that resists the pressure and keeps prices low.

By removing them from the marketplace, it could limit competition and lead to easier price increases for the remaining beer companies.

“That’s put a lot of pressure on them to price competitively,” Mr. Vaheesan said. “They put a lot of pressure on these other companies to price competitively. They’ve become a disruptive force in the marketplace.”

Anheuser-Busch’s stock price fell more than 5 percent on the news to close at $88.60, while Constellation Brands closed down 17 percent at $32.36. Shares of Grupo Modelo were down 6 percent.

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