Miller and Molson Coors make progress on their U.S. deal

SABMiller and Molson Coors took another step toward combining their U.S. beer operations, when they announced before Christmas that they had signed a definitive agreement for the deal, which, nevertheless, still requires regulatory clearance.

In October, the nation’s number two and three brewers announced plans to form MillerCoors in an effort to compete more effectively in a stagnant domestic industry against market leader Anheuser-Busch.

Milwaukee-based Miller has about 18 percent of the market while Denver-based Molson Coors has about 11 percent.

Anheuser-Busch, the St. Louis-based brewer of Budweiser, Michelob and Bud Light, has nearly 50 percent of the market.

If the deal is completed, it will place almost 80 percent of the U.S. beer market in the hands of two companies.

The deal is being reviewed by federal antitrust regulators.

Molson Coors Chief Executive Leo Kiely, who will be CEO of the new venture, said the transaction is expected to close in mid-2008.