(WASHINGTON) – On Friday, May 13, 2016, the International Brotherhood of Teamsters will host a conference call for investors and industry analysts to discuss potential obstacles to Justice Department (DOJ) antitrust approval of the proposed SABMiller plc (LON: SAB) acquisition by Anheuser-Busch InBev (NYSE: ABI) and related sale of the MillerCoors joint venture to the Molson Coors Brewing Company (NYSE:TAP).

“We believe MillerCoors’ decision to close its Eden, N.C., brewery will eliminate needed production capacity in the U.S., drive up prices for consumers and harm industry competition,” said David Laughton, Director of the Teamsters’ Brewery Workers’ Conference which represents workers at all 11 ABI breweries and three of MillerCoors’ major breweries. “It’s becoming harder to see how the U.S. Justice Department can greenlight this deal without addressing the anticompetitive effects of an Eden closure.”

A lawsuit filed by Pabst owners also raises concerns about the Eden closure. Eden is the main MillerCoors brewery producing Pabst products. Pabst was the second highest brand by barrels run at Eden last year behind Miller Lite.

North Carolina Attorney General Roy Cooper is investigating the timing of the decision to close the Eden brewery as well as the potential anticompetitive impact it will have. He has announced that he is working closely with the Department of Justice on the investigation.

“Whether the decision to close Eden could be viewed as a merger-related, anticompetitive, gun-jumping reduction in capacity, or as part of a larger ’unilateral‘ strategy to keep industry capacity tight, it does not inspire confidence that merely swapping out MillerCoors for Molson Coors will leave customers whole,” said Diana Moss, President of the American Antitrust Institute.

WHAT:

Conference Call for Investors, Analysts, Press Regarding Obstacles to Beer Merger

WHO:

David Laughton, Director, Teamsters’ Brewery Workers’ Conference
Allen Grunes, founding partner, The Konkurrenz Group
Diana Moss, Ph.D., President, American Antitrust Institute
Alan Meyers, (moderator) Senior Capital Market Analyst, IBT Capital Strategies Dept.
 

WHEN:  Fri., May 13 at 11 a.m. EDT

To preregister for the call, please email:  dwillett@teamster.org.

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