Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

In the buzz was news on the makers of Coors and Miller Lite announcing plans to combine U.S. brewing operations to compete against Anheuser-Busch.  The joint venture will be called MillerCoors and is projected save $500 million for the companies.

It seems that instead of a full merger or acquisition, some companies engage in joint ventures or partner relationships in order to do business together. Partnership relationships may allow each company to keep its management since there may not be any synergies in have only one management when the management team is equal in strengths or weaknesses.  Say for example, if both entities have a week top sales executive, combining may not be the way to go.

However, cost reductions, finances, stock prices, employee morale, may change if the two companies found a way to do business together without a merger or acquisition.  With a partnership, the companies are also able to improve their workforces by training each party’s employees on how another company runs its operations, getting ideas in return.