Denmark-based Carlsberg and Netherlands-based Heineken is on track buy the UK’s Scottish & Newcastle - brewer of Foster's, Kronenbourg and Newcastle Brown Ale, for €10.4 billion. Scottish & Newcastle, which rejected two earlier bids, agreed to an all-cash offer of €10.64 per share.

If the deal goes through, pending regulatory approval in the US, EU, Ukraine and Russia, Carlsberg will gain sole ownership of Baltic Beverages and S&N's French, Greek and Chinese operations. Heineken would take control of its British, American, Indian and other markets. Baltic Beverages operates 19 breweries, holding the top position in the Russian, Baltic and Kazakh beer markets, and ranks third in Ukraine. Its brands include Baltika, Arsenalnoe, Slavutich and Alma-Ata.

Jean-Francois van Boxmeer, chairman and CEO of Heineken, said the deal will make his company the leading brewer in Europe and create "significant opportunities in profitable markets to grow the premium Heineken brand." Part of Heineken's interest in S&N was getting into the U.K. cider market, which is growing nearly 20% per year.

"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," said Jorgen Buhl Rasmussen, president and CEO of Carlsberg.