Canada will be smaller share of Molson Coors after US12billion deal for

Molson Coors will nearly double its size once it completes a US$12-billion purchase that secures full ownership of its U.S. beer business and gains worldwide control of the Miller brand name.Canada’s share of total Molson Coors revenue will drop to 15 per cent, from 24 per cent, while the U.S. share will grow by 20 percentage points to 64 per cent. Europe will account for 18 per cent and other markets will be three per cent.Molson Coors CEO Mark Hunter said the “game-changing” transaction to acquire full ownership of Miller Coors — a partnership with SAB Miller — will allow the company to invest more in its brands and increase consumer choice.“This is a compelling strategic and financial opportunity that catapults Molson Coors to the next level,” Hunter said during a conference call.“It creates a leading North American brewer with a unique portfolio of iconic brands. This is a rapidly evolving industry and this transaction gives us opportunity to materially strengthen our U.S. business.”The Molson Coors purchase of SABMiller’s 58 per cent stake in a U.S. joint venture, formed in 2008, is separate but related to an even bigger deal that will combine the world’s two biggest brewing companies.SABMiller has agreed to a US$107-billion takeover by industry leader Anheuser-Busch InBev, maker of Budweiser beers, and agreed to sell its share of Miller Coors to reduce regulatory concern that one company would control the U.S. market.AB InBev seals $107-billion deal to buy SABMiller, creating a drink giant that will make almost third of beer consumed worldwideMolson Coors is also buying the global rights to the Miller brand, giving the company greater access to established markets in Canada and Britain, emerging high growth markets like Panama and new countries such as Argentina.The transaction effectively reverses last year’s termination of a longstanding agreement to distribute Miller products in Canada, and also gives Molson Coors full control on how to produce, market and sell those brands. Canada is part of the US$70 million in earnings and US$200 million in annual revenues derived from the Miller international brands.In Canada, the beer market has long been dominated by Molson Coors and AB InBev, through its ownership of Labatt, although the two beer giants have increasingly been challenged by the popularity of smaller local craft brewers.In addition to the Miller brands, the deal gives Molson Coors perpetual royalty-free U.S. licences for SABMiller import and license brands including Peroni, Pilsner Urquell, fosters and Redd’s.Much of the deal’s financial contribution is tied to US$250 million in tax benefits over 15 years and at least US$200 million in annual cost savings, although analysts expect cost savings could reach US$300 million to US$400 million.Brittany Weissman of Edward Jones said the deal likely won’t change much for Canadian consumers.“Most of the way that that landscape changes is going to be behind the scenes in terms of cost savings,” she said in an interview.Molson Coors will become a stronger player to withstand further market consolidation or lead the acquisition of another brewer, she said.But John Colley, professor at Britain’s Warwick Business School, says brewers will need to beef up to spend more on advertising to compete with the big brands.“Molson Coors may not be independent for long,” Colley said in a report. read more

Maptek unveils new strategic panel caving application

first_imgA new strategic panel caving product developed by Maptek™ targets the most cost effective underground mining method in a transparent, analytical way while maximising productivity. Panel, or block caving, is widely considered the ‘new frontier’ as mining operations move towards underground methods.Maptek CaveLogic allows engineers to more effectively plan and reduce the financial risk associated with this subsidence mining method that involves massive volumes of material and large investment.‘The Maptek solution quickly and easily simulates multiple scenarios for identifying the best option,’ said Vice President, Maptek South America, Marcelo Arancibia who previewed the new tool at the recent South America Users Conference in Viña del Mar, Chile.“Dynamic analysis using CaveLogic considers the economic environment and generates practical production plans quickly, easily, accurately and interactively. The point of difference with the Maptek approach is the flexibility for handling project complexity and individual customer needs.“CaveLogic incorporates operational and geotechnical constraints and takes dilution into account by generating multiple scenarios for assessment. Unlike other panel caving systems, results are readily visualised for determining sequencing and are auditable for confident decision support,” explained Arancibia.“Because the projected promised economic value is associated with realistic plans, operations will also benefit from tighter integration between planning and operational areas.“Importantly for users, the calculations in CaveLogic are transparent. The planning engineer is in total control of tracking all of the variables and processes. This leads to better strategies with direct implications for improving business outcomes.”This latest Maptek development references globalised environmental values and targets the natural trend toward underground mining where automation is the key to unlocking productivity, safety and efficiency. The system works directly with Maptek Vulcan™ mine planning systems.CaveLogic is applicable to greenfield and brownfield projects. It can also guide management decisions at open pit operations where feasibility studies are required to evaluate the transition to underground mining.last_img read more