AB InBev, the larger of the two companies, is to takeover SABMiller in a deal worth £44-a share. The newly-merged firm will account for approximately one third of all beer drunk globally.
This marks the largest takeover of a British company in history. The combined market value for the companies would value around £180bn.
SABMiller owns Peroni, Pilsner Urquell and Grolsch, while AB InBev counts Corona and Stella Artois under its banner.
An agreement still needs to be made on the formal offer, but under City rules, they have extended the deadline to October 28 to iron out all of the creases.
The offer made by AB InBev is the fifth they have submitted. The group already tried with £38, £40, £42.15 and £43.50 a share.
Previously SABMiller claimed its rivals offers were “substantially undervalued”.
The £44-a-share offer came just days before AB InBev needed to make a “put up or shut up” offer or they would have to walk away from the deal for six months.
If AB InBev cannot get the OK from regulators, or from its shareholders, the company will have to pay SABMiller a break fee of £2bn.
The share offer equates to a 50% mark-up on the closing share price of the company before the bidding started.
AB InBev has stated that it didn’t want to go hostile with its takeover plans, but it became frustrated with SABMiller’s tactics.
Jan du Plessis, SABMiller’s chairman, called his company the “crown jewel of the global brewing industry”.