Anheuser-Busch Takes InBev Offer - TheStreet

Anheuser-Busch (BUD) - Get Report, the St. Louis-based brewer of Budweiser beer, agreed Sunday to a $70-a-share takeover offer by InBev of Belgium, according to a published report.

The merged company -- which will become the largest brewer in the world -- will be called Anheuser-Busch InBev,

The Wall Street Journal's

Web site reported. The deal ends more than a month of tense speculation and angry words between the two companies.

Anheuser had rejected InBev's original $65-a-share, or $46.3 billion offer, saying it had undervalued the company, known in American lore for its long-neck beer bottles with the red label and its Clydesdale horses. The

Journal

reported the value of the deal at $52 billion. Anheuser will get two seats on the new company's board, with one going to its CEO August Busch IV.

The deal is certain to rankle some in Missouri, where the state's top politicians came out against a foreign takeover of BUD, a folksy institution that dates to 1860. The political leaders also have expressed concern about InBev's penchant for cutting costs and jobs.

The combined company will overtake

SABMiller

as the world's largest brewer. SAB and

Molson Coors

(TAP) - Get Report

, however, will be combining their North American operations this year, presenting a formidable challenge to Anheuser-Busch InBev in the battle for the American beer drinker.

Also at issue in the deal is Anheuser's 50% stake in Mexico's

Grupo Modelo

, the maker of Corona, which has a right to approve a change in control.

Shares of BUD closed Friday at $66.50, up $5.29, or 8.6% in

NYSE

trading, as word spread that an agreement would be reached over the weekend.

This article was written by a staff member of TheStreet.com.