(MillerCoors is a joint venture between the two companies; SABMiller currently controls 58% of it.) That’s good news for Molson Coors, which in terms of size will now trail only AB InBev in the U.S.
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Denver-based Molson Coors Brewing Co is in advanced stage of buying rest of the stake of SABMiller in Miller Coors LLC for $12 billion.
The merger will combine Anheuser-Busch InBev’s Budwesier, Bud Light and Stella Artois brands with SABMiller’s line that includes Peroni and Foster’s.
The update comes almost a month after SABMiller finally accepted a buyout offer from Budweiser brewer Anheuser Busch InBev, a move that came after several rejections.
The world’s two largest beer makers will be joined to create a huge beer company that will operate in a market where now beer purchase by consumers from smaller beer makers is becoming more common.
AB InBev said the takeover would strengthen its position in emerging markets such as Asia, Central and South America and Africa. On the day of the agreement in principle it was worth £39.03 but AB InBev stock has since rallied, taking the value of the unlisted stock and cash offer close to the £44 value of the all-cash offer.
SABMiller reported an 18% drop in profits to $2.33 billion for the first half of the fiscal year, down from $2.83 billion last year, attributed in part to currency headwinds.
The new company will account for 29 per cent of the global 198 billion litre beer market.
“SABMiller has been an excellent partner for the past seven years and we are extremely proud of the organization that our teams have created”, said Mark Hunter, president and CEO of Molson Coors. By purchasing SABMiller’s stake, Molson Coors will gain full control of the operations, and retain the rights to all the brands in MillerCoors USA portfolio.
Expecting more global divestments to come in order to ensure the SAB deal goes ahead, Brito said: “We will continue to proactively address any regulatory concerns regarding our combination with SABMiller in other relevant markets”.
Analysts have raised concerns that the companies might be forced to make a similar concession to regulators in China, where SABMiller holds a 49 percent stake in a joint venture that owns Snow, China’s best-selling beer brand.
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The company will be listed in Belgium, with secondary listings in Johannesburg, Mexico and NY.
