Coors Confirms Molson Talks

Adolph Coors ( RKY) confirmed it is discussing a merger with Canadian brewer Molson.

The companies "are in advanced discussions concerning a possible merger of equals between the two companies, the terms of which are still being discussed and are subject to final board approvals," Coors said in a release. Its stock was halted in after-hours trading after closing at $75.56, up $2.54, or 3.6%.

The possible merger, which would combine two second-tier beer makers both sporting a market cap of around $3 billion, was reported earlier by The Wall Street Journal.

The transaction being contemplated would install Molson Chairman Eric Molson as the combined companies' chairman and leave Coors' Chief Executive Leo Kiely in his current position. Eric Molson is currently involved in a high-profile feud with his cousin, Ian Molson, who controls about 10% of the company's stock. The Journal reported that provisions of their ownership agreements could enable Ian Molson to block the merger.

The company said an announcement could come in the near future and warned there's no guarantee the merger will happen.

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