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Makers of Bud and Miller Reach Merger Terms

(CN) - The two largest brewers in the world - Anheuser-Busch InBev and SABMiller - have tentatively agreed Tuesday to a $104 billion merger.

Joining the makers of Budweiser and Miller, among dozens of other beers, will create a mega-brewer poised to generate an estimated $64 billion in revenue and command almost one-third of the world's beer market.

A-B InBev had made five offers to SABMiller since September, reaching a deal just ahead of a Wednesday deadline for A-B InBev to make a formal offer under the UK's takeover rules.

In a joint statement Tuesday, the companies revealed that they reached a deal on A-B InBev's latest offer to pay about $67 a share for SABMiller - representing a more-than 50 percent premium to SABMiller's closing price in mid-September before A-B InBev first announced its approach.

Corona, Stella Artois, Peroni Nastro Azzurro and Grolsch will all come under the same command with the merger, which is likely to face significant scrutiny from regulatory boards, both in the United States and abroad.

Analysts believe some asset sales will be required.

"In connection with the possible offer, AB InBev would agree to a 'best efforts' commitment to obtain any regulatory clearances required to proceed to closing of the transaction," the companies said in the news release.

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