Molson Coors to acquire SABMiller’s stake in MillerCoors
The world’s two largest brewers have agreed a £71bn tie-up, creating a new global drinks giant. The move came after AB InBev secured a $12bn spin-off deal that will see Molson Coors, buy out SABMiller’s stake in their US joint venture MillerCoors.
To gain regulatory approval, Molson Coors Brewing Co. will acquire SABMiller’s 58 percent stake in MillerCoors for $12 billion, giving it complete control over brands like Coors Light and Blue Moon. The Budweiser maker plans to cut annual costs by $1.4 billion, 1/3 of which will come from overlapping head-office roles. The companies didn’t say what the new entity will be called, or whether SABMiller’s senior management team will remain.
The new brewing giant which will be the largest takeover of a British firm in corporate history, will brew almost a third of the world’s beer, dwarfing major competitors such as Heineken and Carlsberg.
Carlos Brito, chief executive of AB InBev, said “the deal will build the world’s truly first global brewer. It has long been our dream to build the best beer company bringing people together for a better world and we believe this combination represents a step change for our business and our journey towards that goal.”
Alan Clark, chief executive of SABMiller, added that the group’s “next chapter will bring new opportunities for exceptional success”.
Based on Tuesday’s closing share prices and current exchange rates, the offer is worth £70 billion.
