Miller, Coors sign agreement
MILWAUKEE (AP) - The parent company of Miller Brewing, and Molson Coors Brewing say they have signed a definitive agreement making the merger of their U.S. operations official.
The two brewers, the nation's second and third-largest respectively, announced the formation of MillerCoors in October. They said combining their operations in the U.S., along with Puerto Rico, will help them compete in a struggling domestic industry and against its leader, Anheuser-Busch.
Milwaukee-based Miller, which makes brands like Miller Light has about 18 percent of the market while Coors, maker of Coors Light, has about 11 percent.
If the deal is approved, it will place almost 80 percent of the U.S. beer market in the hands of two companies. The St. Louis brewer of Bud Light has nearly 50 percent of the market.
The deal is subject to antitrust review. Last month the companies announced they had received a second request for information from the Department of Justice.
Molson Coors Chief Executive Leo Kiely, who will head up the new venture, says the transaction is expected to close in mid-2008.
Copyright 2007 by The Associated Press. All Rights Reserved.
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