FTSE 100 brewer SABMiller has confirmed takeover interest from the world's biggest beer manufacturer - the maker of Budweiser, Anheuser-Busch InBev (AB InBev).
SAB, which produces beer brands including Grolsch and Peroni, announced the approach following months of talk surrounding a possible bid.
Its statement said: The board of SABMiller notes the recent press speculation and confirms that Anheuser-Busch InBev has informed SABMiller that it intends to make a proposal to acquire SABMiller.
"No proposal has yet been received and the board of SABMiller has no further details about the terms of any such proposal."
A takeover would create a brewing giant with a combined value of almost £180bn - based on the share prices of the two firms following SAB's announcement.
Shares in the UK-listed firm rose almost 19% following the release of its statement.
Its rival said: "AB InBev confirms that it has made an approach to SABMiller’s board of directors regarding a combination of the two companies.
"AB InBev’s intention is to work with SABMiller’s Board toward a recommended transaction.
"There can be no certainty that this approach will result in an offer or agreement, or as to the terms of any such agreement."
SABMiller, which employs 69,000 people in more than 80 countries, produces 200 beer brands and has annual sales of almost £17bn.
AB InBev has 155,000 staff and a huge portfolio of major brands including Stella Artois, Corona, Beck's, Leffe and Hoegaarden.
Any takeover would be subject to regulatory clearances, which could require AB InBev to sell a number of brands - particularly in China and North America - to satisfy any competition concerns.
