US challenges deal to merge Budweiser and Corona
Associated Press :Washington, Jan 31 2013, 22:36 IST
papers filed in the case, ABI acts as the industry price leader, with MillerCoors and other brewers typically joining the price increases set by ABI. Modelo, in contrast, has not joined.
By pricing aggressively, Modelo _ through its importer, Crown Imports _ puts pressure on ABI to maintain or lower prices.
"Today, Modelo aggressively competes head-to-head with ABI in the United States'' and ``that competition has resulted in lower prices and product innovations that have benefited consumers across the country,'' the Justice Department court filing said. ``The proposed acquisition would eliminate this competition by further concentrating the beer industry, enhancing ABI's market power, and facilitating coordinated pricing between ABI and the next largest brewer, MillerCoors, LLC.''
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