Coors, Molson brewers plan ‘merger of equals’

DENVER — Adolph Coors Co., the third biggest U.S. brewer, and Canadian brewer Molson Inc. announced plans to merge Thursday in a deal to create a North American brewing giant to compete against the world’s beermaking titans.

The combined company created by the deal, which was described as a “merger of equals,” would have annual revenues of about $6 billion and would rank fifth in the world by brewing volume, the companies said in a statement.

It will be known as Molson Coors Brewing Co. and will market brands like Coors Original and Coors Light, Molson Canadian, Keystone and Carling.

The deal would merge two family-led breweries both founded more than a century ago. Golden-based Coors trails Anheuser-Busch and SABMiller in the U.S. brewing business, while Montreal-based Molson is neck-and-neck with Interbrew SA’s Labatt Brewing in Canada.

“I am very proud to see the company started by my great-grandfather more than 130 years ago combine with a company of Molson’s caliber and heritage,” said Coors chairman Peter H. Coors, who is running for the U.S. Senate from Colorado.

The deal is subject to approval by shareholders of both companies with meetings expected in the fall and also by regulators.

A former Molson executive could create a possible hitch in the plans. The Wall Street Journal reported Thursday that former Molson deputy chairman Ian Molson was expected to make an offer in the near future to acquire the company for as much as $4 billion. The offer would value the stock at about $30 a share, which would create a premium of more than 30 percent of the stock price before the merger was announced — something the Coors offer does not.

Molson shares rose 1.6 percent to $26.65 (35.25 Canadian dollars) on the Toronto stock market while Coors shares fell $1 to $73.73 on the New York Stock Exchange.