(TDB) - US-based beer producer Molson Coors has confirmed that it is buying SABMiller’s stake in its joint MillerCoors business for $12 billion.

The deal will better free up SABMiller to receive US regulatory approval for its takeover by Budweiser brewer AB Inbev, which was confirmed on Wednesday (11 November).

Molson Coors will also acquire full ownership of the Miller brand portfolio outside of the US as part of the “game-changing” deal to buy SAB’s 58% share of the business.

Molson will also retain the rights to all of the brands currently in the MillerCoors portfolio for the US market, including Redd’s and import brands such as Peroni and Pilsner Urquell.

The deal will create cost synergies – savings and increased revenue as a direct result of the takeover – of at Least $200 million (£130m) by 2020, Molson said in a statement.

Mark Hunter, Molson Coors CEO stated, “This transaction is a game-changing opportunity for Molson Coors and advances our ambition to be the first choice for consumers and customers.”

He expects “significantly enhanced cash flows” and a change to strengthen its footprint overseas. “In short, we will be a more competitive global company,” he said.

The deal is dependant on AB Inbev’s successful takeover of Grolsch and Peroni maker SABMiller.

Carlos Brito, CEO of AB Inbev, said, “Our combination with SABMiller is about creating the first truly global beer company and bringing more choices to beer drinkers in markets outside of the U.S. We are pleased to have reached this agreement with Molson Coors to divest SABMiller’s U.S. assets.