The Successful Investor Hotline – Friday, November 13, 2015

Article Excerpt

MOLSON COORS CANADA INC., Toronto symbols TPX.A $118.50 and TPX.B $124.50, has agreed to buy the 58% of the MillerCoors joint venture it doesn’t own. MillerCoors was formed in 2008, when Molson Coors and SABMiller merged their U.S. brewing operations. Each company has a 50% voting interest in MillerCoors, but SABMiller gets 58% of the profits, while Molson Coors gets 42%. This week, SABMiller agreed to merge with rival Anheuser-Busch InBev to form the world’s largest brewer. Competition regulators will likely require the new firm to sell certain operations, including its MillerCoors stake. Molson Coors will pay $12 billion for SABMiller’s interest (all amounts except share price in U.S. dollars). The deal also includes Miller’s brands outside the U.S. This a big purchase for Molson Coors, which has a $17.0-billion market cap (or the value of all outstanding shares). However, gaining full control of the joint venture will increase Molson Coors’…