Anheuser-Busch InBev has agreed to purchase its main rival SABMiller, creating a super brewery with sales of $55 billion.
The combined firm will be the world’s largest beermaker by far, with nine of the world’s top 20 beers by volume.
AB InBev will pay £44 ($67.59) per share for the maker of Miller Lite, Pilsner Urquell and Peroni, a premium of roughly 50% over SABMiller share price before acquisition rumors started flying.
The companies described the deal, which must be approved by regulators, as a “possible deal.” SABMiller’s board members have indicated they will recommend the offer to shareholders.
SABMiller had played hard to get. The brewer turned down at least four previous offers from AB InBev at £38 ($58), £40 ($61), £42.15 ($64.70) and £43.50 ($66.80) per share.
As younger drinkers turn in ever greater numbers to independent breweries, the global market leaders have been trying to defend their market share.
AB InBev has swallowed Seattle’s Elysian Brewing, Oregon’s 10 Barrel Brewing and Chicago-based Goose Island in the last year or two.
SABMiller has also tapped into the craft beer scene, buying one of the UK’s most successful independents, London’s Meantime Brewing Company.