Molson Coors Brewing Company

I initiated a starter position (~4.4% of portfolio) in Molson Coors Brewing Company (Ticker: TAP) at $81.54 as a play on AB InBev (Ticker: BUD) potential takeover of SAB Miller. I’m pulling out my AB InBev acquisition of Modelo play book. As part of Modelo acquisition AB Inbev essentially gave away the US Corona biz to Constellation Brands, which has benefitted greatly from the deal. In this case, Molson Coors will get to acquire their joint venture stake with SAM Miller at a very attractive price (market assumption). This should be a very nice accretive acquisition for Molson Coors. Who knows, the Justice Department may just throw in some more freebies for Molson Coors to ensure there is a competitive US market. It’ll be interesting to see how this plays out…