The merger between Molson and Adolph Coors has moved a step closer today (11 November). A fund controlled by Molson chairman Eric Molson has successfully severed its ties with a trust controlled by Ian Molson, a cousin who had opposed the merger.

A shareholder agreement with The Swiftsure Trust, controlled by Ian Molson, had effectively given Ian Molson a veto over the proposed merger with Coors.

But Pentland Securities, controlled by Eric Molson, said yesterday that it had amassed enough shares to break the agreement, and by doing so end the potential of Ian Molson blocking the deal.

Pentland bought out shares owned by two Molson heir sisters, giving it 50.7% control of the multiple voting Class B common shares, enough to break the agreement with Swiftsure that was set to expire in 2006.