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Molson/Miller offer more deal details.

In our January 18th issue, we ran our first report of the Miller Brewing Company's purchase of a 20-percent stake in Molson Breweries. Since that time, additional particulars of the deal have been publicized.

Molson called the deal a "strategic alliance," intended to grow Molson's market position in the United States. Of the $348 million Miller paid in the deal, Molson's share is $180 million (Canadian). This yields an approximate valuation of $2.6 billion for Molson Breweries, analysts said.

A Molson spokesperson also reported that the company has granted Miller an exclusive license over Molson and Foster's brands in the U.S., with the brand owners maintaining the right of review and approval over brand strategies in the U.S.

Molson Breweries will continue to produce and market Miller brands in Canada, and all partners will be represented on the Molson Breweries partnership board.
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Title Annotation:Miller Brewing Co.'s Molson Breweries investment
Publication:Modern Brewery Age
Date:Feb 1, 1993
Words:145
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