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Juggling Shareholders’ Expectations: The Molson-Coors Merger
Case 9 40 2021 008
Case published in the International Journal of Case Studies in Management, Vol. 19, No. 2
Languages : 
  • English
Keywords: 
  • Shareholders,
  • Mergers,
  • Governance,
  • Family business,
  • Power
Year of production : 
2021
Registration date : 
2021-05-06
Teaching notes included : 
Yes
Abstract

On July 21, 2004, Molson’s board approved a merger of equals between Molson and Coors. For Eric Molson, chair of the board since 1988, and also head of the Molson family and controlling shareholder, this merger with a strategic partner of similar size would make the merged company – Molson Coors – the fifth-largest brewer in the world. Before this could happen, however, Molson shareholders had to be convinced that this merger would be fair to everyone, not just to the Molson family members who held Class B shares (with voting rights). The merger would require the approval of two-thirds of both the voting and non-voting classes of Molson shareholders. This was far from a done deal since a merger of equals is a zero-premium deal for shareholders. The case explains how Eric and other stakeholders managed to convince Molson shareholders to approve the merger of equals with Coors.

Primary domain : 
Management  - Leadership
Secondary domain : 
Not available
Sectors : 
  • Consumer goods
Source : 
HEC Montréal
Type : 
Traditional case (Descriptive or analytical case)
Type of data used in the production of the case : 
Factual data that is not public wherein the identity of the company/person is disclosed
Event location : 
Canada & USA
Year of start of the event : 
Not available
Year the event ended : 
Not available
Business size : 
Self-employed worker
Main themes covered
  • Governance
  • Family business
Teaching objectives
  • Understand the different types of shareholder in public family firms and the consequences of this diversity in terms of governance and strategy
  • Understand the efforts required of the board and senior executives of a public firm to sell a strategic course to shareholders.
  • Analyze the rational, political, and symbolic dimensions of decisions and the need to manage all aspects of them.
Concepts and theories related to the case
  • Governance
  • Family business