SAB to buy out Miller

Journal Record, The (Oklahoma City), May 31, 2002

LONDON (AP) -- Building on its strength in Asia and Africa, South African Breweries splashed into the U.S. beer market Thursday by announcing an agreement to buy Miller Brewing for $3.6 billion in stock.

The buyout would lift SAB, the world's fourth-largest brewer by volume, into second place, and make it a much tougher competitor for No. 1 Anheuser-Busch.

The new company, to be called SABMiller, would also likely boost exports of Miller brands outside the United States.

"This is a deal that reshapes the top tier of the global brewing industry," SAB Chief Executive Graham Mackay said.

SAB agreed to assume $2 billion in Miller debt, raising the acquisition's total value to $5.6 billion. Miller's parent company, Philip Morris of New York, would keep a 36 percent stake in SABMiller and intends to remain a long-term shareholder.

Miller spokesman Michael Brophy said the buyout would not lead to any job cuts at Miller's seven U.S. breweries. SAB expects to complete the acquisition in July, pending shareholder and regulatory approval.