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Molson Coors nears deal to buy rest of Miller Coors - source

Published 10/11/2015, 21:05
© Reuters. The sign on the Coors brewery is seen in Golden
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By Anjali Athavaley and Ramkumar Iyer

(Reuters) - Molson Coors Brewing Co (N:TAP) is nearing a deal to buy the rest of its U.S. joint venture with SABMiller Plc (L:SAB), as well as the rights to Miller brands internationally, for $12 billion, according to a person familiar with the matter.

The person said the deal would be contingent on the closing of a proposed merger between Anheuser-Busch InBev (BR:ABI) and SABMiller that would create a company making almost a third of the world's beer.

To win over regulators, the combination would almost certainly have to divest assets in the United States and other markets.

Molson Coors has been widely expected to make a bid for SABMiller's 58 percent stake in the joint venture known as MillerCoors LLC. MillerCoors sells brands such as Coors Light, Miller Lite and Blue Moon in the United States.

The venture agreement gives Molson Coors the right to name new management in the event of a change in control and the right to make the first and last bid for the remaining stake, both of which could deter other potential bidders.

AB InBev and SABMiller declined to comment on the agreement, which was first reported by the Wall Street Journal.

© Reuters. The sign on the Coors brewery is seen in Golden

Molson Coors' shares were up 2 percent at $89.15.

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