As well as taking control of MillerCoors, Molson Coors will also own the Miller brand

As well as taking control of MillerCoors, Molson Coors will also own the Miller brand

Molson Coors has confirmed its intention to buy out SABMiller from the MillerCoors US joint venture for US$12bn.

The deal, which relates to today's announcement of Anheuser-Busch InBev's purchase of SABMiller, sees Molson Coors also take control of the Miller brand globally. Upon completion, Molson Coors will also handle SAB's Peroni Nastro Azzuro and Pilsner Urquell brands in the US.

The two companies combined their operations in the US in late-2007, with SAB holding 58% economic interest to Molson Coors' 42%.

Molson Coors said it expects the purchase, which will help AB InBev bypass competition issues in the US, to add around $4.7bn in incremental sales and about $1bn in incremental EBITDA on a pro-forma basis. These would contribute to estimated group sales of $12.2bn and EBITDA of $2.5bn per year.

“This transaction is a game-changing opportunity for Molson Coors," said president & CEO Mark Hunter. "we will strengthen our presence in the highly-attractive US beer market, further improve our global scale and agility, benefit from significantly-enhanced cash flows, and capture substantial operational synergies.

"The acquisition of the Miller brand rights globally will help accelerate Molson Coors’ growth strategy by strengthening our international beer portfolio ... as well as expand our presence in high-growth markets."

In its most-recent set of results, MillerCoors posted flat profits for the nine months to the end of September on a 1% dip in sales.

To read Molson Coors' official statement, click here.