Modelo says will not sell stake to AB Inbev

NAVA, Mexico (BestGrowthStock) – Mexican brewer Grupo Modelo (GMODELOC.MX: ) said on Friday it has no plans to sell an equity stake to partner Anheuser-Busch InBev NV (ABI.BR: ), despite losing a court case that raised speculation of a deal.

AB InBev, the world’s biggest brewer, has a 50.2 percent equity stake in the Mexican company. Modelo in July lost an arbitration case against AB InBev, and analysts have predicted that Mexican shareholders would sell their stakes to AB InBev.

Modelo, maker of Corona beer, claimed $2.5 billion in the dispute on the grounds that it was not consulted about InBev’s $52 billion acquisition of Anheuser-Busch, which created Anheuser-Busch InBev.

Carlos Fernandez, who is from the family that founded the Mexican brewer and leads the board of directors, told reporters during a visit to a new plant in the northern Mexico that Modelo was not interested in selling.

Modelo, meanwhile, expects its sales volume to grow in line with Mexico’s overall economy in 2011, which economists see expanding 3.5 percent.

Modelo also plans to invest 4 billion pesos ($327 million) next year, financial director Emilio Fullaondo said.

(Reporting by Adriana Barrera; Editing by Richard Chang)

Modelo says will not sell stake to AB Inbev