Anheiser-Busch InBev (AB InBev), the maker of Budweiser and Bud Light, and the US Justice Department both announced on Wednesday they had reached a deal to allow the company to go ahead with its plans to acquire SABMiller.

Headquartered in London, SABMiller owns the popular American brand Miller.

"The settlement requires ABI to divest SABMiller's entire US business - including SABMiller's ownership interest in MillerCoors, the right to brew and sell certain SABMiller beers in the United States and the worldwide Miller beer brand rights. This settlement will prevent any increase in concentration in the US beer industry," the Justice Department said in a statement.

New markets

The merger would create a multinational brewing company that would account for around 31 percent of the beer market, Beer Business Daily reported.

In addition to Budweiser and Bud Light, AB InBev also owns Corona, Stella Artois and Beck's Brewery. The company has been looking for opportunities to gain a foothold in less saturated markets, such as in Africa, where SABMiller is already popular. But it has also said it will sell off some brands in order to placate those concerned that the company would control too much of the market.

The company said it expects the deal to close sometime later this year.

blc/gsw (AP, Reuters)