Meet Molson Coors Brewing.
Adolph Coors Co. agreed Thursday to inherit a Canadian cousin and take a back seat in naming rights under the proposed Molson Coors Brewing Co.
In what company officials described as a merger of equals, Pete Coors and Eric Molson, chairmen of the respective firms, said the $6 billion deal will help the historic breweries maintain their centuries of family control while giving them more financial strength to compete against the Budweisers, SABMillers and Heinekens of the beer world.
Under the merger agreement, the Coors and Molson companies would maintain dual headquarters: Molson in its home city of Montreal and Coors in metro Denver, at a site not yet determined, but separate from its brewery in Golden.
Officials said they expect the merger to produce $175 million a year in cost savings by 2007. The biggest component, representing savings of $60 million, would come from what O'Neill called was described as "optimization" of Molson's five breweries in Canada and Coors' two, in Golden and Memphis, Tenn.
Colorado Luis speculates how the merger might affect Pete Coors' Senate bid. As for me, the official Rules of Texas Progressive Blogging state that I cannot mention Coors Beer without also mentioning the Austin Lounge Lizards classic song A Case of Coors Beer. So there.Posted by Charles Kuffner on July 23, 2004 to Bidness | TrackBack