Topic: How To Invest

The Successful Investor Hotline – Friday, October 14, 2016

Article Excerpt

MOLSON COORS CANADA INC., Toronto symbols TPX.A $135.00 and TPX.B $146.10, has completed its acquisition of the remaining 58% of MillerCoors. It now owns 100% of this business. MillerCoors was formed in 2008, when Molson and SABMiller—its joint venture partner in the business—combined their U.S. brewing operations. SABMiller recently merged with rival Anheuser-Busch InBev to form the world’s largest brewer. To satisfy competition regulators, SABMiller agreed to sell its 58% stake in MillerCoors to Molson for $12.0 billion (all amounts except share prices in U.S. dollars). Gaining full control of MillerCoors will boost Molson’s annual revenue, from $3.6 billion in 2015 to around $8.3 billion for fiscal 2016. Combining Molson’s purchasing and distribution operations with MillerCoors should also save the company $200 million a year by the end of the fourth year. Moreover, the purchase will give Molson $250 million in annual tax savings for the next 15 years. Investors holding class B shares of Molson Coors have less voting power to elect…