The deal gives the world’s biggest brewer full control of the Mexican makers of Corona, and is a step towards increasing AB InBev’s footprint in emerging markets.

“There is tremendous opportunity from combining two leading brand portfolios and further expanding Grupo Modelo’s brands worldwide through AB InBev’s extensive global distribution network,” AB InBev Chief Executive Officer Carlos Brito said in the statement.

AB InBev, who is behind giant brands like Budweiser and Stella Artois, has been eager to expand into Mexico and other emerging economies because of slow growth in Europe and North America. AB InBev has recently bought controlling stakes of the Dominican Republic’s biggest brewer, the Cerveceria Nacional Dominicana, for $1.2bn.

In the statement AB InBev has said it expects cost and revenue benefits of over $600m annually from the combined companies. The consolidation will increase AB InBev’s output to 400m hectolitres of beer annually, and produce revenues of over $47bn.