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SABMiller PLC - US Joint Venture: DOJ Approval

RNS Number : 1223W
  SABMiller PLC
  06 June 2008


Transaction Expected to Close on June 30, 2008

June, 6 2008 (London and Denver) -- SABMiller plc (SAB.L) and Molson Coors
Brewing Company (NYSE: TAP; TSX) today announced that they have been informed by
the Antitrust Division of the U.S. Department of Justice ('DOJ') 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

SABMiller and Molson Coors expect the transaction to generate approximately $500
million in annual cost synergies to be delivered in full by the third full
financial year of combined operations.

Graham Mackay, SABMiller's Chief Executive, said: 'We are very pleased the U.S.
Department of Justice has given us clearance to proceed with the planned
MillerCoors joint venture. Today's 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, Chief Executive Officer 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 History and Key Facts
On October 9, 2007, SABMiller and Molson Coors Brewing Company 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 of Directors. 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.

Overview of SABMiller

SABMiller plc is one of the world's largest brewers, with brewing interests or
distribution agreements in over 60 countries across six continents. The group's
brands include premium international beers such as Miller Genuine Draft, Peroni
Azzurro, Grolsch and Pilsner Urquell, as well as an exceptional range of market
leading local brands.  Outside the USA, SABMiller plc 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 million adjusted pre-tax profit and revenue of $ 21,410
million. SABMiller plc is listed on the London and Johannesburg stock exchanges.

For more information on SABMiller plc, visit the company's website:

Overview of Molson Coors

Molson Coors Brewing Company is one of the world's largest brewers. It brews,
markets and sells a portfolio of leading premium-quality brands such as Coors
Light, Molson Canadian, Molson Dry, Carling, Coors, and Keystone Light. It
operates in Canada,
through Molson Canada; in the US, through Coors Brewing Company; in the UK and
Ireland, through Coors Brewers Limited. For more information on Molson Coors
Brewing Company, visit the company's Web site,

Overview of Miller

Miller produces, markets and sells the Miller portfolio of brands in the U.S.
The Miller business to be contributed to the joint venture (the 'Miller
Business') does not include the sales of Miller brands outside the U.S., but
does include the sale of
other SABMiller brands in the U.S.

Overview of Coors

Coors produces, markets and sells the Coors portfolio of brands in the U.S. and
Puerto Rico, which is managed as an integral part of the U.S. business, and also
holds 50% interests in the Rocky Mountain Metal Corporation and Rocky Mountain
Corporation joint ventures. The Coors business to be contributed to the joint
venture (the 'Coors Business') will not include the sales of Coors brands
outside the U.S. and Puerto Rico. The business to be contributed does include
the sale of other Molson
Coors brands in the U.S. and Puerto Rico.

This announcement is for information only and does not constitute an offer or an
invitation to acquire or dispose of any securities or investment advice or an
inducement to enter into investment activity. This announcement does not
constitute an offer
to sell or issue or the solicitation of an offer to buy or acquire the
securities of SABMiller or Molson Coors (the 'Companies') in any jurisdiction.

The distribution of this announcement may be restricted by law. Persons into
whose possession this announcement comes are required by the Companies to inform
themselves about and to observe any such restrictions.

Forward-Looking Statements
This press release includes 'forward-looking statements' within the meaning of
the U.S. federal securities laws, and language indicating trends, such as
'anticipated' and 'expected'. It also includes financial information, of which,
as of the date of
this press release, the Companies' independent auditors have not completed their
review.  Although the Companies believe that the assumptions upon which their
respective financial information and their respective forward-looking statements
are based are
reasonable, they can give no assurance that these assumptions will prove to be
correct. Important factors that could cause actual results to differ materially
from the Companies' projections and expectations are disclosed in Molson Coors'
filings with the
Securities and Exchange Commission and in SABMiller's annual report and accounts
for the year ended 31 March 2007 and in other documents which are available on
SABMiller's website at These factors include, among others,
changes in
consumer preferences and product trends; price discounting by major competitors;
failure to realize anticipated results from synergy initiatives; failure to
obtain regulatory consents or other third party approvals; and increases in
costs generally.  All
forward-looking statements in this press release are expressly qualified by such
cautionary statements and by reference to the underlying assumptions. Neither
SABMiller nor Molson Coors undertakes to update forward-looking statements
relating to their
respective businesses, whether as a result of new information, future events or
otherwise.  Neither SABMiller nor Molson Coors accepts any responsibility for
any financial information contained in this press release relating to the
business or operations
or results or financial condition of the other or their respective groups.

For further information, please contact:

    SABMiller / Miller                                                      Tel: +44 20 7659 0100/ 414 931-6313
    Nigel Fairbrass        Media Relations, SABMiller            Mob: +44 7799 894265

Molson Coors / Coors
Kabira Hatland        Media Relations, Molson Coors       Tel:  303 277-2555

This information is provided by RNS
The company news service from the London Stock Exchange



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