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Ball Corp. to Pay Miller $70 million |
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Wednesday, 10 October 2007 |
BROOMFIELD, Colo.: Ball Corp. on Tuesday said it has agreed to pay Miller Brewing Co. about $70 million as part of a contract dispute settlement between its aluminum can manufacturing division and the nation's No. 2 brewer.
The one time payment will happen in January as part of a resolution of various business issues between Ball Corp.'s Ball Metal Beverage Container Corp. and Miller, the company said in a statement.
As part of the agreement, Ball Metal will remain Miller's beverage can supplier through 2015. Overall, the settlement will mean a third quarter charge of about $86 million.
"We are pleased to have this dispute behind us and that the good faith mediation process resulted in this settlement," said R. David Hoover, chairman, president and CEO of Ball Corp. said in a statement.
The settlement was announced the same day Miller's parent company, London-based SABMiller PLC, and Coors announced they planned to blend their U.S. operations to help them compete in a struggling U.S. industry against its leader, Anheuser-Busch.
Copyright 2007 Associated Press. All rights reserved.
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