Big beer is about to get a little bigger. Today's WSJ reports that Molson Coors, SABMiller To Combine U.S. Operations (sub req):
Molson Coors Brewing Co. and SABMiller PLC plan to combine their U.S. and Puerto Rican operations, creating a beer powerhouse with annual revenue of about $6.6 billion.
The venture will be called MillerCoors. The two companies will share control of the venture, but because of the economic value of their respective units SABMiller will have a 58% economic interest to Molson Coors's 42% interest. The companies expect $500 million in annual cost savings.
The deal is expected to close by the end of 2007. Both companies' business will be conducted separately until the deal completes.
"This transaction is driven by the profound changes in the U.S. alcohol beverage industry that are confronting both of our companies with new challenges," said Pete Coors, Vice Chairman of Molson Coors.
MillerCoors? Why not Moors or maybe Ciller?
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