AB InBev to pay $20bn for Grupo Modelo Anheuser-Busch InBev is set to take full control of its Mexican rival, the maker of Corona Anheuser-Busch InBev is to pay $20.1bn to take full control of Grupo Modelo, the Mexican brewer in which it has a 50 per cent stake, as the world's biggest brewer continues to lead consolidation in the global beer market. The price, which equates to $9.15 a share and will be paid in cash, is substantially higher than that mooted by analysts when news of the deal - long anticipated given AB InBev's existing holding - broke last week. It is also a 30 per cent premium to Modelo's closing price on June 22. On AB InBev's numbers, spreading it over 100 per cent of the equity, the price translates into a multiple of enterprise value to this year's consensus earnings before interest, tax, depreciation and amortisation of 13 times; based on the incremental 50 per cent of equity gives a price of 15.5 times, according to Bernstein Research, although the overall returns are also higher on this basis. That is at the top end of multiples for emerging markets acquisitions in the sector, although below the 25 times multiple AB InBev's Brazilian unit AmBev paid for fellow brewer Cervecería Nacional Dominicana earlier this year. "Yes the price is high, but we are not bowled over by it, and knew they would have to pay to get the [controlling] family to dispose of it," said Nicole Thain, analyst at Bernstein Research. AB InBev, which currently controls just 44 per cent of Modelo's voting rights, will take on an additional $14bn bank facility. It expects to be below its targeted net debt to normalised ebitda ratio of two times during 2014. AB InBev is anticipating annual synergies of $600m, which analysts reckon are achievable, given the company's record for sweating assets and - given its acquisitive nature - crunching down prodigious amounts of debt. Carlos Brito, chief executive of AB InBev, said there was "tremendous opportunity" unleashed by the combination. That includes pushing Modelo brands, such as Corona, through AB InBev's global distribution. However, in order to pre-empt antitrust issues, Modelo is to sell its 50 per cent stake in Crown Imports, its US joint venture, to fellow owner Constellation Brands for $1.85bn. Analysts noted that, depending on regulators, further concessions may have to be made. Carlos Fernández, chairman and chief executive of Grupo Modelo, described the deal as "exciting." He said: "We have worked together with AB InBev in a productive decades-long partnership, and it is time to cement our relationship through this merger." However, the family had been less forthcoming in previous overtures. Several analysts spotted the inflection spot for a takeover two years ago, when Grupo Modelo lost a two-year arbitration case against AB InBev. But Modelo demurred, saying in a letter at the time that "The conclusion of this procedure does not alter the share structure or administration of Grupo Modelo."