Molson Coors responds to US decision on AB InBev & SABMiller deal

The US Department of Justice has reached a final agreement with AB InBev and SABMiller, which will allow Molson Coors to acquire SABMiller’s 58% stake in MillerCoors, as well as the Miller brand portfolio outside of the US. 

The proposed AB InBev-SABMiller merger is still subject to clearance from the Chinese regulatory authorities, as well as other non-regulatory conditions, which are required in order for the transaction to close.

Last month, the Competition Tribunal of South Africa approved AB InBev’s takeover of SABMiller, with conditions including the sale of SABMiller’s stake in Distell Group Ltd.

Mark Hunter, president and CEO of Molson Coors stated, “This [the US DoJ decision] represents a critical milestone on our journey to take full control of MillerCoors upon the closure of the AB InBev-SABMiller merger.

"The acquisition will allow us to simplify decision-making and reduce the complexities of dual ownership; it will allow us to become a more integrated and efficient brewer; and it will allow us to become a more effective competitor as a single owner, promoting consumer choice in an increasingly diverse and fast-growing brewing industry.”

“We are still awaiting additional closing conditions for the AB InBev-SABMiller merger to be completed, but we are now well on our way to closing our transaction, which we expect will be completed before the end of the year,” Hunter added.

Craft beer acquisition

Also announced yesterday, MillerCoors said its craft beer division Tenth and Blake will acquire a majority stake in Athens, Georgia-based Terrapin Beer Company, with the deal expected to close in August. The acquisition builds on Tenth and Blake’s minority stake in the company made in 2012.

TerrapinBeer.png
Terrapin Beer Company has a 84,000-square-foot brewery and 100-barrel brew house creates year-round and seasonal beers

Terrapin will expand Tenth and Blake's craft beer portfolio, which already includes Blue Moon Brewing Company, Jacob Leinenkugel Brewing Company, and Saint Archer Brewing Company.  

Founded in 2002, Terrapin includes brands such as, Hopsecutioner IPA, HI-5 IPA, RecreationAle Session IPA and Rye Pale Ale, which are distributed throughout 12 US states in the Southeast.

Terrapin will operate as a business unit of Tenth and Blake, and its management team will continue to operate the brewery, MillerCoors said.