Under the terms of the agreement, Molson’s shareholders would have a slight advantage in ownership. Molson, the oldest brewer in Canada, would control 55% of the new company. A majority of stock in both companies are owned by members of the Molson and Coors families.
Coors is currently the third-largest brewer in the United States with a 11% share of the market. Molson is Canada’s largest brewer is 43% of the domestic market share.
There is however a possible snag in the merger plans. One-time deputy chairman, Ian Molson has presented a last minute takeover bid for Molson Inc. Molson resigned from the company last month after a fall out with his cousin and company Chairman, Eric Molson.
If the deal goes through, Eric Moslon will
become chairman of the board for the new merged company, while Coors CEP
Leo Kiely III, will be named CEO.
Molson is the oldest brewer in North America, the company was founded in 1786. Coors was founded in 1873. But the real question remains: if the two companies merge, will they make their beer drinkable? .