The rumored tie up between Constellation Brands and energy drink maker Monster Beverage is progressing and a deal could be completed in the coming weeks, according to a Bloomberg report.
Citing “people familiar with the matter,” Bloomberg reported that “a merger agreement could be reached in the coming weeks if negotiations proceed smoothly.”
A combined Monster and Constellation Brands — whose portfolio includes Mexican import brands Corona, Modelo and Pacifico — would hold a market value of $90 billion, the outlet reported.
In November, Bloomberg first reported on talks between the two beverage giants. However, those negotiations were thought to have ended after Monster agreed to acquire the CANarchy Craft Brewery Collective in a $330 million deal last month.
Expected to close in Q1, the Monster-CANarchy transaction will give the energy drink goliath the infrastructure it has long desired to produce its own alcoholic beverages, although not under the Monster brand name, as well as craft breweries Oskar Blues, Cigar City, Deep Ellum, Perrin Brewing, Squatters, and Wasatch.
Discussions between Monster and Constellation apparently have resumed — if they had ever even stalled. The structure of a deal between the two companies remains murky, and Bloomberg’s sources said the deal “might take longer to reach or could still fall apart.”
Read previous coverage:
How Does a Constellation-Monster Deal Get Done? RBC Analyst Nik Modi Plays Out the Scenarios
CANarchy’s Winding Road of Control Prior to Monster Sale
Monster Executives Discuss CANarchy Acquisition and Forthcoming Hard Seltzer Brand