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Molson Coors CEO Calls Craft Segment “Overvalued,” Hints At Buyout Of SABMiller Stake

June 27, 2014

Molson Coors CEO Peter Swinburn offered his thoughts on surging acquisition prices in the craft brewing industry and the possibility of Molson Coors buying out U.S. joint venture partner SABMiller in a series of interviews yesterday.

Speaking to Bloomberg, Swinburn described North American craft breweries as “massively overvalued,” even as the craft beer segment’s volume jumped 18% last year, according to the Brewers Association, and now comprises an 8% volume share of the $100 billion U.S. beer market.

In a separate interview with the Wall Street Journal, Swinburn said he wouldn’t rule out Molson Coors buying SABMiller’s 58% stake in U.S.-based MillerCoors to take full control of the company, in the event SABMiller was merged with or acquired by AB-InBev—as has been heavily rumored in recent weeks. The Journal said the acquisition price of SABM’s stake in MillerCoors could be above $10 billion. A combined SABM and ABI would almost certainly need to divest the MillerCoors stake on antitrust grounds.

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