SABMiller, Molson Coors get US OK for joint venture
British brewer SABMiller and US-Canadian Molson Coors said Thursday US antitrust regulars had concluded a review and that they are "free to proceed" with a joint venture in the US market under a new company called MillerCoors.
By Agencies |
WASHINGTON: British brewer SABMiller and US-Canadian Molson Coors said Thursday US antitrust regulars had concluded a review and that they are "free to proceed" with a joint venture in the US market under a new company called MillerCoors.
"SABMiller and Molson Coors expect the transaction to generate approximately 500 million dollars in annual cost synergies to be delivered in full by the third full financial year of combined operations," according to a joint statement.
"We are very pleased the US Department of Justice has given us clearance to proceed with the planned MillerCoors joint venture," said Graham Mackay, SABMiller's chief executive.
"Today's news underscores our strong belief that this combination will not only generate significant growth and cost synergies, but will also create tremendous opportunities for innovations in products and services that will greatly benefit America's beer distributors, retailers and consumers."
Leo Kiely, CEO of Molson Coors, added: "MillerCoors is quickly moving toward becoming a reality, and I'm looking forward to working with the entire team to build on our momentum and grow our leading brands and consumer offerings."
He added that "while we recognize that regulatory clearance is just one step in creating a dynamic US competitor, it is a critical milestone, and we're obviously very happy about the outcome."
ADVERTISEMENT
The closing of the joint venture transaction is expected to take place around June 30. The Miller and Coors businesses will continue to be operated separately until that time. SABMiller and Molson Coors will have equal voting rights in the new MillerCoors company, with SABMiller holding a 58 percent economic interest and Molson Coors 42 percent, the statement said.
The joint venture would have annual revenues of about 6.6 billion dollars (4.7 billion euros).
SABMiller plc, one of the world's largest brewers, operates in over 60 countries across six continents, owning brands including Miller, Peroni Nastro Azzurro, Grolsch and Pilsner Urquell.
ADVERTISEMENT
Molson Coors owns brands including Coors Light, Molson Canadian, Molson Dry, Carling, Coors, and Keystone Light. Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
