Molson Coors to acquire $12bn share in MillerCoors

Molson Coors brewing company is set to acquire $12 billion dollar worth of shares in Anheuser-Busch InBev (AB InBev) interest in MillerCoors LLC.

MillerCoors is formerly co-owned by SABMiller and Molson Coors and the transaction is expected to be sealed in the second half of 2016.

Under the terms of the purchase agreement, Molson Coors will acquire SABMiller’s 50% voting interest and 58% economic interest in MillerCoors.

Upon completion of the transaction, MillerCoors will become a wholly owned subsidiary of Molson Coors, and Molson Coors will have full control of the operations and resulting economic benefits of MillerCoors.

“The agreement shows that Molson Coors will acquire full ownership of the Miller brand portfolio outside of the US and retain the rights to all of the brands currently in the MillerCoors portfolio for the US market, including import brands such as Peroni and Pilsner Urquell,” the company said in a statement.

The sale also includes the global Miller brand, currently sold in over 25 countries, including Canada, Colombia, Czech Republic, Ecuador, Mexico, Panama, Romania, Russia, South Africa and the United Kingdom, as well as related trademarks and other intellectual property rights.

Carlos Brito, chief executive officer of AB InBev, said the combination with SABMiller is not only about to create the first truly global beer company but bring more choices to beer drinkers in markets outside the US.

“We are pleased to have reached this agreement with Molson Coors to divest SABMiller’s US assets,” he said.

“We will continue to proactively address any regulatory concerns regarding our combination with SABMiller in other relevant markets.

Mark Hunter, president and chief executive officer of Molson Coors, said, “SABMiller has been an excellent partner for the past seven years and we are extremely proud of the organization that our teams have created.”

“We have a deep passion for and understanding of the MillerCoors brands, strategy and culture and believe this transaction is the ideal outcome for this business. We look forward to continuing to provide our distributors, retailers and consumers with an extraordinary portfolio of brands.”

Both the MillerCoors transaction and the SABMiller transaction are conditional upon the receipt of, among other things, customary regulatory approvals.

In connection with this transaction, Lazard acted as lead financial advisor to AB InBev. Barclays has also provided financial advice to AB InBev.

Cravath, Swaine & Moore LLP and Freshfields Bruckhaus Deringer LLP acted as legal counsel.

Prior to the completion of the SABMiller Transaction, neither AB InBev nor any AB InBev subsidiary or affiliate will possess any right, title or interest in or to the assets to be transferred by SABMiller to Molson Coors pursuant to the MillerCoors Transaction.

There can be no assurance that the MillerCoors transaction or the SABMiller transaction will occur or will occur on the contemplated timetable.

AB Inbev is the world’s largest brewer, with about 25 percent global market share.