A proposed merger would allow Milwaukee to maintain its coveted Miller Brewing Co. and at the same time form a new company with a worldwide clientele.

Miller may merge with two foreign companies, Scottish & Newcastle PLC and South African Breweries PLC. This merger will make the company the largest brewery in the world.

Miller is currently second to Anheuser-Busch Co. in the United States, but merging with the two strong foreign competitors will push it ahead of both Anheuser-Busch and Heineken NV, which are the most prominent in the industry.

Beer-industry analysts predict part of the deal will be to maintain Milwaukee as the international headquarters and also preserve approximately 1000 jobs.

The deal would also allow all three companies to reach a market previously unavailable. Scottish & Newcastle will be able to extend beyond its European borders.

The deal could potentially benefit Phillip Morris Cos., Miller’s parent company. Phillip Morris will sell off most of its small beer business and at the same time maintain a minority of stock in the new conglomerate.

Final agreements have not been reached between Phillip Morris and the two foreign companies.