The Molson Coors Brewing Co. shed about $1.3 billion in market value Wednesday, following reports that the mega-merger between SABMiller and Anheuser-Busch InBev could be stalling.
SABMiller CEO Alan Clark told employees in a memo that work to bring the two companies together had “paused” as the company entertained a made Tuesday to compensate for the sharp drop in the British pound following the Brexit vote last month, which went in favor of having the United Kingdom leave the European Union.
The deal, initially valued at $108 billion, will carry a $103.8 billion price tag under the revamped offer. SABMiller’s board and its largest shareholders reportedly weren’t consulted, and the way AB InBev made the offer effectively blocked the possibility of a higher follow-up offer for six months under U.K. securities regulations.
Denver-based Molson Coors was slated to pick up SABMiller’s 58 percent interest in MillerCoors, something required to address anti-trust concerns. Expectations that Molson Coors would had helped push up its shares more than 40 percent the past year.
Shares of Molson Coors closed at $93.13 on Wednesday, down $4.98 or 5.1 percent after dropping more than 8 percent at one point. About 16.8 million shares traded Wednesday, compared to an average daily volume of 1.87 million shares.
A Molson Coors spokesman declined to comment on the reports the merger may be in trouble or the drop in the company’s share value.
