Welcome BeerCorp

[Dr. Whiplash]

Somehow, when I think of beer news I think of this board. So here is a beer bulletin...

SABMiller of London and Colorado-based Molson Coors Brewing Company today announced that they have signed a letter of intent to combine the U.S. and Puerto Rico operations of their respective subsidiaries in a joint venture to create a stronger, brand-led U.S. brewer with the scale, resources and distribution platform to compete more effectively in the increasingly competitive U.S. marketplace.

The new company, which will be called MillerCoors, will have annual combined beer sales of 69 million U.S. barrels and net revenues of approximately $6.6 billion.

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. 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.

[Dave Loudin]

Sheesh. Breweries are starting to sound like brokerages.

[Dave Allen]

mmmmmmmmm beer

[cgarison]

Adolph Coors is spinning in his grave. The company with the acquistion of Molsen and merger with Miller will be 65% Union.

Yeah Beer!