LONDON & DENVER -- SABMiller plc and Molson Coors Brewing Co. said that they have been informed by the Antitrust Division of the U.S. Department of Justice that the DOJ has completed its Hart-Scott-Rodino antitrust review of their proposed joint venture and has closed its investigation. The parties are therefore free to proceed with the combination of their respective U.S. and Puerto Rico operations to form a new company called MillerCoors.
SABMiller and Molson Coors expect the transaction to generate approximately $500 million in annual cost synergies to be delivered in full by the [image-nocss] third full financial year of combined operations.
Graham Mackay, SABMiller's CEO, said: "We are very pleased the [DOJ] has given us clearance to proceed with the planned MillerCoors joint venture. [The] news underscores our strong belief that this combination will not only generate significant growth and cost synergies, but will also create tremendous opportunities for innovations in products and services that will greatly benefit America's beer distributors, retailers and consumers."
Leo Kiely, CEO of Molson Coors, added: "MillerCoors is quickly moving toward becoming a reality, and I'm looking forward to working with the entire team to build on our momentum and grow our leading brands and consumer offerings. While we recognize that regulatory clearance is just one step in creating a dynamic U.S. competitor, it is a critical milestone, and we're obviously very happy about the outcome. We're actively engaged in the various planning elements and are ready to get out of the gate smoothly and quickly upon close."
The closing of the joint venture transaction is expected to take place on or about June 30, 2008. The Miller and Coors businesses will continue to be operated separately and in the ordinary course until completion of the transaction.
On October 9, 2007, SABMiller and Molson Coors Brewing announced that they had agreed to combine the U.S. and Puerto Rico operations of their respective subsidiaries, Miller and Coors, in a joint venture. SABMiller and Molson Coors will each have a 50% voting interest in the joint venture and have five representatives each on its board. Based on the economic value of the contributed assets, SABMiller will have a 58% economic interest in the joint venture and Molson Coors will have a 42% economic interest.
London-based SABMiller has brewing interests or distribution agreements in more than 60 countries across six continents. The group's brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro, Grolsch and Pilsner Urquell, as well as an exceptional range of market leading local brands. Outside the USA, SABMiller is also one of the largest bottlers of Coca-Cola products in the world. In the year ended 31 March 2008, the group reported $ 3.639 billion adjusted pre-tax profit and revenue of $21.41 billion.
Molson Coors Brewing, Denver, brews, markets and sells a portfolio of brands such as Coors Light, Molson Canadian, Molson Dry, Carling, Coors, and Keystone Light. It operates in Canada, through Molson Canada; in the United States, through Coors Brewing; in the United Kingdom and Ireland, through Coors Brewers Ltd.
Milwaukee-based Miller produces, markets and sells the Miller portfolio of brands in the United States. The Miller business to be contributed to the joint venture does not include the sales of Miller brands outside the U.S., but does include the sale of other SABMiller brands in the United States.
Golden, Colo.-based Coors produces, markets and sells the Coors portfolio of brands in the United States and Puerto Rico, which is managed as an integral part of the U.S. business. The Coors business to be contributed to the joint venture will not include the sales of Coors brands outside the United States and Puerto Rico. The business to be contributed does include the sale of other Molson Coors brands in the United States and Puerto Rico.
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