Sightlines — AB-Inbev + MillerCoors deal creates Newco, the "First Global Brewer"

Michael Kiser

THE GIST
SAB Miller and AB-Inbev have agreed terms for a deal over $100 Billion to form Newco, in what AB Inbev CEO Carlos Brito described as the “world’s first truly global brewer”. A major part of the deal involved SAB Miller’s confirmation that it will sell its US stake in MillerCoors, in an effort to avoid Department of Justice barriers. Molson Coors continues to be the front-runner to purchase SAB Miller’s 58% stake, rumored to cost approximately $12 Billion.

WHY IT MATTERS
Even though this has been brewing for years, and picked up steam in recent weeks, getting news of the official agreement still hits home. It seems unfathomable to take the two biggest companies in an industry and merge them together, but their global footprints (and strengths/weaknesses) are highly complementary. Molson Coors will look to swiftly move on a deal with SAB Miller to purchase US rights to their relevant portfolio. If such a deal goes through, which will pave the way for DOJ approvals on the larger ABI/SAB deal, life in the US beer market won’t see too much change in the short-term. For in-depth insights into what the deal could mean for the US beer drinker, read our Sightlines Feature.


— Nate Micklos