Carlsberg and Heineken have reached an agreement to buy Scottish & Newcastle (S&N).
The 800p-a-share offer values the company at £7.8bn. Carlsberg is expected to now take full ownership of Baltic Beverage Holdings (BBH) while Heineken will take over S&N's operations in Britain.
S&N chairman Sir Brian Stewart said: "The management and employees of S&N have built a group with strong brands enjoying leading positions in both mature markets in Western Europe and growing emerging markets.
"These emerging markets include those covered by BBH, the prospects of which shareholders will be better placed to assess as a result of today's announcement.
"The S&N Board believes that the Consortium's offer delivers a fair value for S&N, reflecting its growth prospects, and will be recommending that shareholders accept."
Carlsberg president Jorgen Buhl Rasmussen said: "In a single step we have created the world's fastest growing global brewer. We now have full control of our destiny in Russia and other BBH territories and I am truly excited about the new opportunities this will present to us."
Heineken chairman Jean-Francois van Boxmeer added: "This is a significant strategic step for Heineken. It gives us undisputed leadership in Europe and creates significant opportunities in profitable markets to grow the premium Heineken brand."