HomeIndustriesConstellation Brands Settles With Activist Investor Elliott, Appoints Two Independent Directors

Constellation Brands Settles With Activist Investor Elliott, Appoints Two Independent Directors

Constellation Brands, maker of beer brands Corona and Modelo, has announced a settlement with activist investor and one of its largest shareholders Elliott Investment Management. The news comes after Elliott threatened to put pressure on the company for the lack of transparency with its investors.

Under the agreement, Constellation Brands will appoint two independent directors. Luca Zaramella, Chief Financial Officer for Mondelez CFO, and Bill Giles, former CFO for AutoZone, will join the company’s Board of Directors, which will now grow from 11 to 13 members.

As part of the settlement, Constellation Brands agreed to share confidential information with Elliot, while Elliott agreed to “certain standstill, voting, confidentiality, and other commitments.”

Elliott, who is one of the company’s top 10 stakeholders, has reportedly been in private talks with the company for the past several months before the settlement was made.

“We appreciate the perspective provided by our counterparts at Elliott, who have provided valuable input as we continue to take steps to enhance value to the company’s shareholders and other stakeholders,” said Constellation Brands in a press release confirming the agreement with Elliott.

The announcement sent Constellation Brands shares surging, with the company’s stock jumping 5.35% on Wednesday. It is up 17.72% year-to-date.

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