CHICAGO SABMiller and Molson Coors Brewing on Monday will announce more chief executive appointments to MillerCoors, after the Department of Justice completed an antitrust review of the brewers' joint venture and closed its investigation this week.
The two companies are now free to proceed with combining their U.S. and Puerto Rico operations of Miller and Coors brewing, to form MillerCoors. The deal is expected to close at the end of this month.
Next week, the brewers will appoint senior executives for marketing, sales and other joint venture functions, such as legal, human relations, IT and operations. The senior team will then proceed with selecting the headquarters for MillerCoors.
Already Leo Kiely, CEO of Molson Coors, was tapped as CEO of MillerCoors, and Tom Long, Miller's CEO, has been selected as president and chief commercial officer of the joint venture. In April, Tim Wolf, MolsonCoors' CFO, was named as MillerCoors' chief integration officer and Gavin Hattersley, Miller's svp, finance, was selected as CFO.
"MillerCoors is quickly moving toward becoming a reality, and I'm looking forward to working with the entire team to build on our momentum and grow our leading brands and consumer offerings," Kiely said in a statement. "While we recognize that regulatory clearance is just one step in creating a dynamic U.S. competitor, it is a critical milestone, and we're obviously very happy about the outcome."
MillerCoors is expected to yield $500 million in annual cost savings in its third full financial year of operations. The joint venture's combined marketing budget will also challenge that of Anheuser-Busch, which spent $395 million on advertising last year, per Nielsen Monitor-Plus. A-B is reported to be a takeover target of Belgium-based InBev.