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AB InBev To Sell SABMiller’s Stake In MillerCoors Following Proposed Merger

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According to an Anheuser-Busch InBev and SABMiller “co-operation agreement” regarding the two companies’ intended merger, AB InBev has agreed to sell SABMiller’s interest in MillerCoors and the Miller Global Brand Business to Molson Coors Brewing Co. upon completion of the merger. AB InBev says this demonstrates its “commitment to promptly and proactively address regulatory considerations.”

MillerCoors is a joint venture in the U.S. and Puerto Rico between Molson Coors Brewing and SABMiller. Reports indicate that Molson Coors will pay approximately $12 billion for the MillerCoors business.

The boards of AB InBev and SABMiller announced Wednesday that they had reached an agreement on the terms of “a recommended acquisition of SABMiller by AB InBev.” The deal, in which AB InBev will reportedly pay $107 billion for SABMiller, is expected to be finalized in the second half of 2016.

The companies first agreed “in principle” to merge in mid-October, following several offers by AB InBev to purchase its fellow beer giant.

Carlos Brito, CEO of AB InBev, said, “We are excited about our agreement on the terms of a recommended acquisition of SABMiller to build the world’s first truly global brewer. We believe this combination will generate significant growth opportunities and create enhanced value to the benefit of all stakeholders. By pooling our resources, we would build one of the world’s leading consumer products companies, benefitting from the experience, commitment and drive of our combined global talent base. Our joint portfolio of complementary global and local brands would provide more choices for beer drinkers in new and existing markets around the world. Moreover, a combination of our two companies would allow us to make a greater and more positive impact on the communities in which we live and work, drawing on our shared commitment in this regard. It has long been our dream to build the ‘Best Beer Company Bringing People Together For a Better World,’ and we believe this combination represents a step change for our business and our journey towards achieving that goal.”

Added Jan du Plessis, chairman of SABMiller, “SABMiller has an unmatched footprint in fast-growing developing markets, underpinned by our portfolio of iconic national and global brands. However, AB InBev’s offer represents an attractive premium and cash return for our shareholders, and secures earlier delivery of our long-term value potential, which is why the board of SABMiller has unanimously recommended AB InBev’s offer.”

Alan Clark, CEO of SABMiller, said: “SABMiller grew from small beginnings, brewing quality cold beer for thirsty miners in the dusty streets of 19th century Johannesburg. More than 120 years later, generations of incredibly talented people have built a highly-admired, high-performing global beer and beverage business. We’ve always nurtured the art of brewing, which has given us a stable of locally-loved and internationally-famous beers. What’s also made us special is our deep understanding of navigating different local markets, catering for local tastes and helping build the communities around us. Listing on the London Stock Exchange in 1999 was the launch pad for our global ambitions, leading to the creation of the No. 2 global brewer and a FTSE-10 company, with industry-leading shareholder returns. The SABMiller story is a simply amazing achievement, and everyone who has been a part of it should feel immensely proud of the value they have helped create. I am sure the next chapter will bring new opportunities for exceptional success.”

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