MEXICO CITY- Shares of Grupo Modelo rose on Tuesday after the company confirmed that that have held talks with Anheuser-Busch InBev regarding a possible expansion. This was after The Wall Street Journal reported that the Belgian firm planned to buy the 50% of the shares.
Stocks of the brewery closed with a gain of 19.32% or 116.87 pesos a share.
The Mexican brewer said the study is a variety of strategic options to create value for their shareholders.
Shares of the brewery were suspended after they climbed up to $109.49 dollars from their previous close of 97.95 pesos. Trading for Grupo Modelo resumed on Monday after the company confirmed holding talks with Anheuser-Busch InBev.
The company also said that discussions with AB InBev may or may not result to an amicable agreement and warned that any speculation on the terms and conditions is premature. They said they were aware of the rumors about a possible alliance with Anheuser Busch InBev.
An agreement would give AB InBev, the world’s largest brewer, access to the Mexican market. Beer sales in Mexico grows annually from 2 to 3 percent so an alliance would benefit the company well. Additionally, they would be given distribution rights for Corona, the leading imported beer brand in America.