Brewer SABMiller is to snap up Dutch beer firm Grolsch in a deal announced today worth €816 million.
SAB Miller said it had secured the backing of the Grolsch board for its approach.
The offer will see SAB pay €48.25 for each share — an 84 per cent premium to the average closing value of Grolsch shares over the past month.
The takeover — if approved by shareholders — is set to bring together Grolsch's eponymous lager with SAB's existing brands such as Peroni Nastro Azzuro and Pilsner Urquell.
SAB's deal to buy Grolsch marks the latest in a series of mergers and acquisitions in the sector as the trend for consolidation among brewers gathers pace.
Scottish & Newcastle is currently being pursued by rivals Carlsberg and Heineken, although the Foster's and Kronenbourg 1664 maker has so far rejected two takeover approaches from the suitors.
SAB has also been linked with a potential rival bid for S&N in an attempt to gain control of its Russian and eastern European business Baltic Beverages Holdings.
Last month, it unveiled a joint venture with US brewer Molson Coors to combine their US operations in a bid to close the gap with market leaders Budweiser and Michelob brewer Anheuser-Busch.
SAB hopes to be able to further grow the Grolsch brand internationally, in particular within developing lager markets, such as Africa and Latin America.
Graham Mackay, chief executive of SAB Miller, said: "Within the SABMiller family, Grolsch will continue to build on almost 400 years of brewing heritage and together we will establish new positions in the most important emerging beer markets around the world."
Grolsch revealed that SAB's approach had been unsolicited.
But the group's chief executive Ab Pasman said: "When we were asked to consider SABMiller's proposal the key question was if greater value could be achieved than through our own existing strategy. Since this appeared to be the case, we entered into discussions."
Shareholders are set to have their vote on the deal in the new year.
Grolsch said that any competing offer would have to come in at a price of at least €51.87 for each share — 7.5 per cent above SAB's bid — to gain the board's support.
Grolsch reported net profits of €19.2 million last year.
While it has a 15% share of the Netherlands market, around 80% of its sales volumes are made overseas, including the UK, US, France and Australia.
SAB last week revealed its interim figures, with a slightly lower than forecast 14 per cent hike in half-year pre-tax profits, at $1.58 US billion.
But it said it had seen UK beer volumes rise 42% despite a depressed domestic beer market.