Belgian brewer Interbrew agreed to take control of Brazil's AmBev today creating a company worth about $16.5 billion to rival Anheuser-Busch as the world's largest brewer.
Interbrew will gain a 57 per cent stake in AmBev and would form a new company called InterbrewAmbev.
AmBev, which will continue with separate Brazilian and US stock market listings, will take over Interbrew's North American Labatt brewing assets. Ambev's three main shareholders will take 25 per cent of InterbrewAmbev.
Analysts have criticised Interbrew for overpaying for past acquisitions such as Bass in the United Kingdom and failing to make expected savings from merging operations.
The deal comes after Interbrew reported a fall in earnings per share to euro1.45 from euro1.51 which the company blamed on a strong euro that reduced overseas earnings.
Sales edged up 0.7 per cent to euro7.04 billion, and earnings before interest, tax, depreciation and amortisation were higher at euro1.498 billion against 2002's euro1.394 billion.