SABMiller, Molson Coors sign joint venture agreement

SABMiller plc and Molson Coors Brewing Company on December 21 announced that they have signed the definitive transaction agreement for the combination of the U.S. and Puerto Rico operations of their respective subsidiaries, Miller and Coors, into MillerCoors LLC, the joint venture that they announced on October 9, 2007.

Graham Mackay, chief executive of SABMiller, said, "Today’s announcement is an important step forward towards completing the MillerCoors joint venture, a combination that will ultimately allow us to better meet the needs of distributors, retailers and consumers in the U.S. marketplace by providing greater choice, product availability and increased innovation.”

Leo Kiely, chief executive of Molson Coors, said, “This combination of our two highly complementary U.S. businesses creates a stronger brewer and allows us to better compete.  We look forward to closing the deal in mid-2008 and are cooperating fully with the regulatory clearance process.”

The closing of the transaction is subject to obtaining clearance from U.S. competition authorities, certain other regulatory clearances and any required third-party consents. The Miller business and the Coors business will continue to be conducted separately and in the ordinary course until completion of the transaction.

Overview of SABMiller: SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in more than 60 countries across six continents. The group’s brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as a range of market-leading local brands. Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world.

Overview of Molson Coors: Molson Coors is one of the world's leading brewers. It brews, markets and sells a portfolio of premium quality brands such as Coors Light, Molson Canadian, Molson Dry, Carling, Coors and Keystone Light. It operates in Canada, through Molson Canada; in the U.S., through Coors Brewing Company; and in the United Kingdom, Europe and Asia, through Coors Brewers Limited.

Overview of Miller: Miller produces, markets and sells the Miller portfolio of brands in the U.S. The Miller business to be contributed to the joint venture does not include the sales of Miller brands outside the U.S., but does include the sale of other SABMiller brands in the U.S.

Overview of Coors: Coors produces, markets and sells the Coors portfolio of brands in the U.S. and Puerto Rico, which is managed as an integral part of the U.S. business, and also holds 50 percent interests in the Rocky Mountain Metal Corporation and Rocky Mountain Bottle Corporation joint ventures. The Coors business to be contributed to the joint venture will not include the sales of Coors brands outside the U.S. and Puerto Rico. The business to be contributed does include the sale of other Molson Coors brands in the U.S. and Puerto Rico.