STZ stock trading has been halted today due to Department of Justice
Shares of Constellation Brands are down 20.5 percent and trading has been halted.
The U.S. Department of Justice is suing to block global beverage giant InBev's proposed purchase of Grupo Modelo, a unit of Constellation Brands.
Bloomberg has the details:
Shares of both companies plunged after the Justice Department filed a complaint today in federal court in Washington, arguing the transaction violates antitrust law because it would eliminate the â€œsubstantial head-to-head competitionâ€ that exists between InBev and Modelo.
â€œIf ABI fully owned and controlled Modelo, ABI would be able to increase beer prices to American consumers,â€ Bill Baer, the head of departmentâ€™s antitrust division, said in a statement. â€œThis lawsuit seeks to prevent ABI from eliminating Modelo as an important competitive force in the beer industry.â€
Trading in the stock has already been halted by automatic circuit-breakers multiple times in this morning's session.
We will discuss disposition of this issue in tonights watch list.