Molson-Coors agree to merger :: Namibia Internet Gateway cc ::

Articles: Molson-Coors agree to merger

Posted by admin on Thursday, July 22, 2004 - 12:53 AM

Canadian beer giant Molson Inc. and Adolph Coors Co., agreed on a $6-billion (U.S.) merger Wednesday night, the New York Times reported.
But according to several reports, Ian Molson, the company's former deputy chairman who resigned after a fued with Eric Molson, has been spearheading a rival $4-billion bid to acquire Molson's. The deal could be announced Thursday in order to coincide with Coors' second-quarter earnings and the day it meets with shareholders and analysts, the Wall Street Journal said. There are a number of details that have yet to be ironed out, so it is possible that an announcement could be delayed, according to the newspaper's sources. The Coors board, led by Chairman Peter Coors, supports the transaction, which would join together two family-controlled brewing icons in a industry that is consolidating quickly, the Journal said. Molson, a 218-year-old Montreal-based brewer, has been considering a sale or partnership with one of the big global brewers as is struggles with flat beer sales in Canada, a faltering growth strategy in Brazil and rapidly diminishing size relative to the giant global rivals emerging in a consolidating industry. Meanwhile, Golden, Col.-based Coors hasn't kept pace with the international expansion of brewing giants Anheuser-Busch Cos. and Interbrew SA. Coors and Molson have already been working together since 1998, with Coors distributing certain Molson products in the U.S., and Molson distributing some of Coors's brews in Canada.

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