Anheuser-Busch InBev signs US$12 billion agreement with Molson Coors

Anheuser-Busch InBev (AB InBev) has announced an agreement with Molson Coors Brewing Company regarding a complete divestiture of SABMiller plc’s interest in MillerCoors LLC, a joint venture in the US and Puerto Rico between Molson Coors and SABMiller. The total transaction is valued at US$12 billion and is conditional on the completion of AB InBev’s previously announced acquisition of SABMiller, which is expected to complete 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.

Under the agreement, 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 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, “Our combination with SABMiller is about creating the first truly global beer company and bringing more choices to beer drinkers in markets outside of the US. We are pleased to have reached this agreement with Molson Coors to divest SABMiller’s US assets. We will continue to proactively address any regulatory concerns regarding our combination with SABMiller in other relevant markets.”