SABMiller and Molson Coors Join Forces in United States

10/10/2007

SABMiller plc and Molson Coors Brewing Company intend to combine the U.S. and Puerto Rico operations of their respective subsidiaries, Miller and Coors, in a joint venture to create a stronger, brand-led U.S. brewer with the scale, resources and distribution platform to compete more effectively in the increasingly competitive U.S. marketplace. The new company, which will be called MillerCoors, will have annual pro forma combined beer sales of 69 million U.S. barrels and net revenues of approximately $6.6 billion. SABMiller and Molson Coors will each have a 50 percent 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 percent economic interest in the joint venture and Molson Coors will have a 42 percent economic interest.