Brewing giants agree to $104B merger, could impact Molson Coors

As the only “logical buyer” for the joint venture, Molson Coors could make a move that could help resuscitate the company, which has suffered from declining market share in the US and Canada, analysts at Evercore ISI wrote in a client note.

10%: Increase in Molson Coors share price in New York. The 52-week low of the share price is $63.91.

THE QUOTE: US stocks have started October with strong gains, as investors speculate that the Federal Reserve will hold off from raising interest rates amid signs that the global economy remains week.

Assuming the SABMiller acquisition gets done, Molson Coors is the “ultimate buyer” of the USA operations, said Morningstar analyst Adam Fleck. Shares are now 11% off of their late July high. The shares closed down 2.86 points or 3.5% at $78.75 with 5,811,483 shares getting traded. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The Insider selling transaction had a total value worth of $212,500.

Molson Coors could pay anywhere from $9 billion to $13.5 billion USA for the shares in the joint venture it does not already own, Fleck said. The company has an average rating of “Hold” and an average target price of $84.00. Also, CEO Krishnan Anand sold 2,500 shares of the business’s stock in a transaction on Monday, September 21st. The stock is ranging from $87.29 to $88.94, and is market capitalization right now is $168.49 billion. The disclosure for this sale can be found here.

After several rejections, beermaker SABMiller plc has finally said yes to a takeover bid from rival Anheuser-Busch InBev NV – a deal that could have major implications for Denver-based Molson Coors Brewing Co., whose shares jumped in early trading today. The days to cover are 1, given the average daily volume of 5,753,707 shares.

EUROPE’S DAY: Stocks fell in Europe. The company reported $1.41 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.09.

Johnson & Johnson, declared sales of $17.1 billion for the third quarter of 2015, a decrease of 7.4% as contrast to the third quarter of 2014.

Molson Coors Brewing Company (NYSE:TAP) is a holding Company that runs as a brewer. During the same quarter previous year, the firm posted $1.57 earnings per share. The Organization operates in four segments: Molson Coors Canada (MCC or Canada segment), operating in Canada; MillerCoors LLC (MillerCoors or US segment), managing in the United States (U.S.); Molson Coors Europe (Europe segment), running in Bosnia Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Republic of Ireland, Romania, Serbia, Slovakia and the United Kingdom (U.K.), and Molson Coors global (MCI), managing in various other countries. The business’s quarterly revenue was down 15.4% on a year-over-year basis. The Company is a brewer and has a portfolio of owned and partner brands, including signature brands Coors Light, Molson Canadian, Carling and Staropramen, as well as craft and specialty beers such as Blue Moon, Creemore Springs, Cobra and Doom Bar.