Actionable news
0
All posts from Actionable news
Actionable news in TAP: MOLSON COORS BREWING COMPANY CLASS B,

Mega beer deal offers Molson Coors a bigger swig of U.S. market

Tour buses featuring various MillerCoors products are parked outside the Coors brewery in Golden, Colorado February 12, 2014.

A deal between the world's two biggest brewers gives smaller rival Molson Coors Brewing Co (TAP.N) a rare chance to bulk up in the United States, provided it can come up with the cash, according to industry bankers and analysts.

Anheuser-Busch InBev (ABI.BR) and SABMiller PLC (SAB.L) agreed on Tuesday to create a company making almost a third of the world's beer, bringing together such brands as AB InBev's Budweiser and Corona with SABMiller's Peroni and Grolsch.

To win over regulators, the combination would almost certainly have to exit from SABMiller's U.S. business, which it operates through a joint venture with Molson Coors. Molson Coors is widely expected to make a bid for SABMiller's 58 percent stake in their jointly owned MillerCoors, known for such brands as Coors Light, Miller Lite and Blue Moon. Their venture agreement gives Molson Coors the right to name new management in a the event of a change in control and the right to make the first and last bid for the remaining stake, both of which could deter other potential bidders.

Full ownership of the joint venture...


More