AB InBev's takeover of SABMiller officially approved

Stella Artois-maker AB InBev’s £79 billion takeover of rival SABMiller cleared its final hurdle on Wednesday after the majority of shareholders from both brewing giants approved the merger plans.

The deal, dubbed “megabrew”, will create a powerhouse, producing almost a third of the world’s beer.

The firms are behind brands including Pilsner Urquell and Corona.

The vote ends a year-long pursuit that saw the brewers negotiate at length over price before spending months hammering out brand sales to get the acquisition past the regulators.

A deal was agreed last year but AB InBev was forced to raise its offer after sterling plummeted in the wake of the vote for Brexit.

John Colley, Warwick Business School professor of practice in the strategy and international business group said: "The bid price started high followed by five increased offers, and has effectively been driven higher by competition authority demands and activist investors."

The approval of SABMiller shareholders was widely expected, but not a given.

AB InBev will retain its own name and will ditch that of SABMiller. The takeover will complete on October 10.