The two brewers have reached agreement on the latest offer from AB InBev, which would see SABMiller shareholders receive £44 per share in cash, with a partial share alternative available for approximately 41% of the shares.
The deal will create the world’s biggest brewer, producing one third of all the beer consumed.
The all-cash offer represents a premium of approximately 50% to SABMiller’s closing share price of £29.34 on 14 September 2015.
AB InBev’s brands
SABMiller is the maker of beers including Peroni, Pilsner Urquell and Grolsch, while InBev brews beers such as Budweiser, Stella Artois, and Corona among others.
AB InBev had made previous offers at £38, £40, £42.15, and £43.50 per share. The two brewers have not yet formally finalised terms of a deal, but the latest development means they have extended the City deadline for a firm offer until 28 October.
The decision by the SAB board to recommend the latest offer comes after a week of very public negotiations over the value of the company.
It is unclear how a potential merger would work, especially considering SABMiller's tie-up in the USA with Molson Coors - and it is unlikely that a potential mega-brewer would be able to sell seven out of 10 US beers without divestment of some products.
There are also European and UK competition laws to consider.
More reaction to follow