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MILWAUKEE (AP) _ South African Breweries PLC completed its $3.4 billion purchase of Miller Brewing Co. on Tuesday, forming the world's second-largest brewer.

London-based South African Breweries had announced May 30 that it had agreed to buy Miller, the second biggest U.S. brewer, from Philip Morris Companies Inc. and to form a new company called SABMiller.

Philip Morris, which owns the world's biggest tobacco company, is getting $3.38 billion in SABMiller shares, a 36 percent stake in the combined company, in exchange for Milwaukee-based Miller, which makes Miller High Life and Miller Lite beer.

SAB also agreed to assume $2 billion in Miller debt in the deal.

Philip Morris, which also makes Marlboro cigarettes and is parent company of Kraft foods, intends to remain a long-term shareholder.

Miller, the only major brewer still based in this one-time beer capital, will remain in Milwaukee. The deal puts Miller CEO John Bowlin in charge of SABMiller's U.S. and Central American operations.

The new company employs more than 38,000 people in 111 breweries.

South African Breweries rose 3.5 percent to 5.3 pounds in trading in London, while Philip Morris shares declined 71 cents to close at $46.69 on the New York Stock Exchange.

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On The Net:

Miller Brewing Co.: http://www.millerbrewing.com/

South African Breweries: http://www.sabplc.com/