AB InBev has reached agreement on the terms of a recommended takeover of SABMiller, which will see both companies merged into a newly established entity called Newco.

Belgian company Newco has been established to acquire SABMiller, the two companies announced on Wednesday night.

“AB InBev will also merge into Newco so that, following completion of the transaction, Newco will be the new holding company for the combined group,” they said.

However, the companies have not yet decided on the trading name for the combined group,AB InBev CEO Carlos Brito told journalists, suggesting it will not be Newco.

“We’ve worked very hard to get to this point today. The name of the company is not something that’s been top of the list at this point,” he said.

AB InBev also announced it had moved to “promptly and proactively address regulatory considerations” by agreeing to the sale of SABMiller’s interest in US joint venture MillerCoors, and related entities, to Molson Coors Brewing Company.

“Our joint portfolio of complementary global and local brands would provide more choices for beer drinkers in new and existing markets around the world,” said AB InBev CEO Carlos Brito.

“Moreover, a combination of our two companies would allow us to make a greater and more positive impact on the communities in which we live and work, drawing on our shared commitment in this regard.

“It has long been our dream to build the Best Beer Company Bringing People Together For a Better World, and we believe this combination represents a step change for our business and our journey towards achieving that goal.”

The deal faces no major regulatory hurdles in the Australian market, a leading competition lawyer recently told Australian Brews News.