| Fri 6 Jun 2008, 8:00 | | SAB - SABMiller Plc And Molson Coors Receive U.S.Department Of Justice Clearance |
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SAB
SOSAB
SAB - SABMiller Plc And Molson Coors Receive U.S.Department Of Justice Clearance
To Proceed With Millercoors Joint Venture
SABMiller plc
JSEALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
SABMILLER PLC AND MOLSON COORS RECEIVE U.S. DEPARTMENT OF JUSTICE CLEARANCE TO
PROCEED WITH MILLERCOORS JOINT VENTURE
Transaction Expected to Close on June 30, 2008
June, 6 2008 (London and Denver) -- SABMiller plc (SAB.L) and Molson Coors
Brewing Company (NYSE: TAP; TSX) today announced that they have been informed by
the Antitrust Division of the U.S. Department of Justice ("DOJ") that the DOJ
has completed its Hart-Scott-Rodino antitrust review of their proposed joint
venture and has closed its investigation. The parties are therefore free to
proceed with the combination of their respective U.S. and Puerto Rico operations
to form a new company called MillerCoors.
SABMiller and Molson Coors expect the transaction to generate approximately $500
million in annual cost synergies to be delivered in full by the third full
financial year of combined operations.
Graham Mackay, SABMiller`s Chief Executive, said: "We are very pleased the U.S.
Department of Justice has given us clearance to proceed with the planned
MillerCoors joint venture. Today`s news underscores our strong belief that this
combination will not only generate significant growth and cost synergies, but
will also create tremendous opportunities for innovations in products and
services that will greatly benefit America`s beer distributors, retailers and
consumers."
Leo Kiely, Chief Executive Officer of Molson Coors, added: "MillerCoors is
quickly moving toward becoming a reality, and I`m looking forward to working
with the entire team to build on our momentum and grow our leading brands and
consumer offerings. While we recognize that regulatory clearance is just one
step in creating a dynamic U.S. competitor, it is a critical milestone, and
we`re obviously very happy about the outcome. We`re actively engaged in the
various planning elements and are ready to get out of the gate smoothly and
quickly upon close."
The closing of the joint venture transaction is expected to take place on or
about June 30, 2008. The Miller and Coors businesses will continue to be
operated separately and in the ordinary course until completion of the
transaction.
Transaction History and Key Facts
On October 9, 2007, SABMiller and Molson Coors Brewing Company announced that
they had agreed to combine the U.S. and Puerto Rico operations of their
respective subsidiaries, Miller and Coors, in a joint venture.
SABMiller and Molson Coors will each have a 50% voting interest in the joint
venture and have five representatives each on its Board of Directors. Based on
the economic value of the contributed assets, SABMiller will have a 58% economic
interest in the joint venture and Molson Coors will have a 42% economic
interest.
Overview of SABMiller
SABMiller plc is one of the world`s largest brewers, with brewing interests or
distribution agreements in over 60 countries across six continents. The group`s
brands include premium international beers such as Miller Genuine Draft, Peroni
Nastro Azzurro, Grolsch and Pilsner Urquell, as well as an exceptional range of
market leading local brands. Outside the USA, SABMiller plc is also one of the
largest bottlers of Coca-Cola products in the world. In the year ended 31 March
2008, the group reported $ 3,639 million adjusted pre-tax profit and revenue of
$ 21,410 million. SABMiller plc is listed on the London and Johannesburg stock
exchanges.
For more information on SABMiller plc, visit the company`s website:
www.sabmiller.com.
Overview of Molson Coors
Molson Coors Brewing Company is one of the world`s largest brewers. It brews,
markets and sells a portfolio of leading premium-quality brands such as Coors
Light, Molson Canadian, Molson Dry, Carling, Coors, and Keystone Light. It
operates in Canada, through Molson Canada; in the US, through Coors Brewing
Company; in the UK and Ireland, through Coors Brewers Limited. For more
information on Molson Coors Brewing Company, visit the company`s Web site,
http://www.molsoncoors.com.
Overview of Miller
Miller produces, markets and sells the Miller portfolio of brands in the U.S.
The Miller business to be contributed to the joint venture (the "Miller
Business") does not include the sales of Miller brands outside the U.S., but
does include the sale of other SABMiller brands in the U.S.
Overview of Coors
Coors produces, markets and sells the Coors portfolio of brands in the U.S. and
Puerto Rico, which is managed as an integral part of the U.S. business, and also
holds 50% interests in the Rocky Mountain Metal Corporation and Rocky Mountain
Bottle Corporation joint ventures. The Coors business to be contributed to the
joint venture (the "Coors Business") will not include the sales of Coors brands
outside the U.S. and Puerto Rico. The business to be contributed does include
the sale of other Molson Coors brands in the U.S. and Puerto Rico.
This announcement is for information only and does not constitute an offer or an
invitation to acquire or dispose of any securities or investment advice or an
inducement to enter into investment activity. This announcement does not
constitute an offer to sell or issue or the solicitation of an offer to buy or
acquire the securities of SABMiller or Molson Coors (the "Companies") in any
jurisdiction.
The distribution of this announcement may be restricted by law. Persons into
whose possession this announcement comes are required by the Companies to inform
themselves about and to observe any such restrictions.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of
the U.S. federal securities laws, and language indicating trends, such
as "anticipated" and "expected". It also includes financial information, of
which, as of the date of this press release, the Companies` independent auditors
have not completed their review. Although the Companies believe that the
assumptions upon which their respective financial information and
their respective forward-looking statements are based are reasonable, they can
give no assurance that these assumptions will prove to be correct. Important
factors that could cause actual results to differ materially from the Companies`
projections and expectations are disclosed in Molson Coors` filings with the
Securities and Exchange Commission and in SABMiller`s annual report and accounts
for the year ended 31 March 2007 and in other documents which are available on
SABMiller`s website at www.sabmiller.com. These factors include, among others,
changes in consumer preferences and product trends; price discounting by major
competitors; failure to realize anticipated results from synergy
initiatives; failure to obtain regulatory consents or other third party
approvals; and increases in costs generally. All forward-looking statements in
this press release are expressly qualified by such cautionary statements and by
reference to the underlying assumptions. Neither SABMiller nor Molson Coors
undertakes to update forward-looking statements relating to their respective
businesses, whether as a result of new information, future events or otherwise.
Neither SABMiller nor Molson Coors accepts any responsibility for any financial
information contained in this press release relating to the business or
operations or results or financial condition of the other or their respective
groups.
Contacts
For further information, please contact:
SABMiller / Miller Tel: +44 20 7659 0100/ 414 931-6313
Nigel Fairbrass Media Relations, SABMiller Mob: +44 7799 894265
Molson Coors / Coors
Kabira Hatland Media Relations, Molson Coors
Tel: 303 277-2555
Date: 06/06/2008 08:00:02 Produced by the JSE SENS Department.
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