SAB Miller and Coors Merge

123jump.com Staff
09 Oct, 2007
New York City

Molson Coors and SAB Millier have agreed to merge their U.S. operations into a new company called MillerCoors with sales of $6.6 billion. As more people prefer craft or imported beer and choose wine over beer, beer companies are consolidating at a rapid pace. SLM sued its bidders and asked to carry out the bid at $60 per share or pay $900 million. India surged 4.5% to a record high and led Asian markets. European markets are trading higher. Stocks in New York are indiacting higher opening.

[R]8:30AM New York – SAB Miller and Molson Coors have agreed to combine their U.S. operations. New York stocks are indicating higher opening. European markets are up. Asian markets closed sharply higher led by a 4.5% surge in India.[/R]

Market indexes are pointing higher opening in the pre-market trading. S&P 500 futures increased 3 to 1,566, Nasdaq 100 futures added 3.50 to 2,183, and Dow Jones Industrial Average gained 20 to 14,132.

SABMiller Plc and Molson Coors Brewing Company have agreed to combine their U.S. operation with 58% of shares controlled by SABMiller and 42% by Molson Coors. Beer companies are facing changing market taste as more people prefer wine to beer. Beer drinkers in the past ten years are choosing small brewery or ‘craft’ beer or imported labels and wine.

The new company, to be called MillerCoors, will have annual pro forma combined beer sales of 81 million hectoliters and net revenues of approximately $6.6 billion. The deal is likely to be completed by the end of the year and companies are hoping to save $500 million annual cost. Both companies are conducting a conference call at 10:00AM Eastern Time.

Yum Brands ((YUM)) reported third quarter net income of $270 million compared to $230 million from a year ago. Earnings per share jumped to 50 cents from 45 cents a year ago.

Sallie Mae, the student lender known as SLM sued the private equity group led by J. C. Flowers and asked the group to pay $900 million fees if they are interested in pursuing the buy-out deal at $60 per share.

Dollar in international trading edged a fraction with one euro fetching $1.402899.

European markets at mid-day are trading higher led by 0.8% rise in the Netherlands followed by increased of 0.78% in Italy, 0.74% in UK, and 0.4% in Switzerland. Energy stocks led the rally in the European trading.

Sonepar SA of France has offered 2.5 billion euros to acquire Hagemeyer N.V. of Holland. With the acquisition Sonepar is likely to lead world market in electrical connectors and assemblies. Hagemeyer jumped 8% after the preliminary offer.

Northern Rock surged 20% after the UK guaranteed to insure all new deposits. The company is negotiating with several financial firms to raise capital. Financial Times reported that the company is working with Citigroup and Merrill Lynch to arrange as much as $20 billion.

Asian markets closed sharply higher led by a surge in Mumbai trading. India led the region wth a rise of 4.5% to a new record close at 18,280.24 followed by 1.7% gain in Hong Kong, 1.2% in Singapore, 0.5% in Thailand, 0.45% in Shanghai and Malaysia, and 0.3% in Australia. South Korea closed at a new record high after edging up 0.07%.