Beer giant AB InBev today announced a deal to take full control of Mexican brewer Grupo Modelo, the maker of Corona, for $20.1 billion.
The move will expand InBec's empire, which already includes Budweiser.
Anheuser-Busch InBev said it would buy the half of Modelo it does not yet already own, while it will keep the Mexican company's name and its headquarters in Mexico.
"Grupo Modelo has been one of our most important partners for more than 20 years and we are very pleased to evolve our long and successful relationship into this combination," said InBev chief executive Carlos Brito.
The deal will create a behemoth spanning 24 countries which produces around 400 million hectoliters of beer volume per year, with estimated revenues of $47 billion. The deal will be done on the basis of $9.15 per share, representing a premium of 30% on the price on June 22 before the first rumours of the transaction.
InBev, a Belgian-US group that also owns Beck's and Stella Artois, said it expected the operation to generate savings of more than $600m a year. It said it would cover part of the cost by selling to US group Constellation Brands half of the capital in the US importer of Corona for $1.85 billion.
Constellation Brands already owns half of the importing firm, Crown Imports. AB InBev was created in 2008 in a deal worth $52 billion which brought together the Belgian-Brazilian company InBev with US company Anheuser-Busch.
The takeover of Modelo gives InBev another foothold in emerging nations to offset a drop in beer consumption in developed nations. The deal also gives the Belgium-based company full control of the popular Corona brand, a beer often consumed with a slice of lime.
"Together we will be the leading global brewer with top brands around the world and positions in some of the fastest growing countries," said Modelo chief executive Carlos Fernandez.
"This is an exciting transaction that will bring our brands and proud heritage to even more consumers internationally while offering an increasing number of AB InBev's brands in Mexico,'' he added.
