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MOLSON ACQUIRES BRAZILIAN BREWER

Montreal-based Molson has acquired Brazilian brewer Kaiser for US$765 million. The second largest brewer in Brazil, Kaiser's main brand is Kaiser Pilsen. Kaiser also brews Santa Cerva, Kaiser Summer Draft, Xingu, Kaiser Bock and Heineken under license. Molson plans to combine Bavaria, its existing operation in Brazil, with Kaiser. In a separate deal Heineken will acquire 20% of the newly-created combined entity for US$220 million. Heineken will also extend its Canadian distribution agreement with Molson for 10 years as well as extend the licensing agreement for the Heineken brand in Brazil. Molson acquired Bavaria in December 2000 from Companhia de Bebidas das Américas (AmBev).

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