Budweiser and Miller
Budweiser owner AB InBev has approached SABMiller several times with an offerGetty

SABMiller and AB InBev have come to an agreement on terms for a tie-up, which would create the world's biggest beer brewer, already dubbed 'MegaBrew'. The agreement, at around £44 (€59.5, $67.6) per share in cash for SABMiller investors, is one of the biggest mergers ever.

The offer values SABMiller between £68bn and £72bn and has significantly improved the terms for the brewer's shareholders.

The bid gives SABMiller investors a 50% premium over shares when valued at £29.34, the closing price on 14 September, when the Budweiser owner first approached its rival. Since then, multiple offers from AB InBev were constantly turned down by the Peroni and Fosters owner.

For Altria Group and BevCo, SABMiller's biggest investors holding a combined stake of 41%, a partial share alternative has been offered, meaning the parties hold onto a part of their stake, while still receiving some cash for the shares sold to AB InBev.

AB InBev has upped its offer from around £42 per share, with SABMiller refusing to give in to the initial offers, despite pressure from big shareholders.

The combined brewer will make a third of all beers worldwide, and will own a very significant part of the market share, well ahead of rivals Heineken and Coors. The size of the deal means both companies will have to wait for EU antitrust approvals and other regulatory rituals.

If the deal falls through, AB InBev has agreed to pay a £1.95bn 'reverse break fee' to SABMiller.