NEW YORK – Coors and Miller have combined their U.S. brewing operations to better compete with rival Anheuser-Busch, the Associated Press reports.

Known as MillerCoors, the combined operation will sell the Coors Light and Miller Light brands in the United States. Currently, Anheuser-Busch has captured about half of the U.S. beer market with its brands.

In the new company, SABMiller retains a 58 percent economic interest, while MolsonCoors Brewing Co. owns 42 percent. However, the two will split voting interests equally.

The combined company will save $500 million because of reduced shipping distances, optimized production and elimination of duplicate corporate and marketing services, among other things.

Pete Coors, vice chairman of Molson Coors, has been appointed chairman of MillerCoors, and Molson Coors CEO Leo Kiely has been named its new CEO. Tom Long, CEO of Miller, has been tapped as president and CMO.

Molson Coors and SABMiller will conduct all U.S. business exclusively through MillerCoors, which is expected to have a combined annual beer sales of approximately $6.6 billion.