The Boards of SabMiller and AB InBev have announced that they have reached an agreement on the key terms of a takeover offer.

The ‘Possible Offer’ agrees to GBP 44.00 per share for SABMiller, representing a 50 per cent increase from SABMiller’s closing share price on 14 September 2015.

The statement said that the Board of SABMiller was happy to recommend the all-cash offer of GBP 44.00 per SABMiller share to SABMiller shareholders.

AB InBev must now confirm its intended by 5.00pm on 28 October.