The board of drinks giant SABMiller has backed an improved takeover offer from Budweiser brewer Anheuser-Busch InBev.
Shareholders in SABMiller will now receive £45 a share, up from its earlier offer of £44, valuing SABMiller at about £79 billion.
Investors had been mulling over the increased offer made on Tuesday triggered by the collapse in the value of the pound after the Brexit vote.
The pound has plunged in value versus the dollar since the June 23 vote, falling more than 10% to 1.31 US dollars.
The announcement comes after AB InBev cleared another major hurdle in its pursuit of the London-listed drinks firm after winning regulatory backing in China.
Jan du Plessis, chairman of SABMiller, said: "The board's decision was "difficult given changes in circumstances since the board originally recommended £44 per share in cash last November.
"At that time we were satisfied that the 50% premium to the undisturbed share price appropriately reflected the quality of the business and its long-term prospects.
"Since then, various factors have affected the value of the offer, most importantly the impact of the Brexit vote on the value of sterling and the re-rating of comparable companies.
"This has made the board's decision more challenging, and we believe the final cash consideration of £45 per share to be at the lower end of the range of values considered recommendable.
"In reaching its decision, the board has considered the best interests of the company as a whole and has taken into account all salient facts and circumstances."
The SABMiller board said it had also voted unanimously to propose that shareholders should be allowed to vote separately from investors Altria and BEVCO.
A date has yet to be set for shareholders to vote on the board's recommendation.
Concerns about the deal have been raised by investors, such as Elliott Management, Davidson Kempner Capital Management and Aberdeen Asset Management.
However, other shareholders, including New York-based investment management firm Twin Capital Management, want the takeover to go through.
The recommendation comes as the takeover approach was given the green light by China's Ministry of Commerce after the Belgian brewer agreed to sell SABMiller's 49% stake in China Resources Snow Breweries to China Resources Beer.
It means the firm's swoop has now been approved in 23 jurisdictions worldwide, satisfying all pre-conditions of the deal.
The company said it is still aiming to complete the mega-merger to create the world's biggest drinks firm by the end of this year.
AB InBev reported a 4.3% rise in operating profits for the second quarter to 4.01 billion US dollars (£3.04 billion) following strong sales of Budweiser, Corona and Stella Artois.
It said the three brands saw revenue growth of 8.4% over the period, with Corona alone notching up a 13% rise compared to the second quarter of last year.
AB InBev, the world's largest brewer, has already moved to sell SABMiller's Peroni, Grolsch and Meantime brands to Japanese firm Asahi. It has also signalled its intent to sell SABMiller's businesses in central and eastern Europe.
SAB employs around 69,000 people in more than 80 countries and has global annual sales of more than 26 billion US dollars (£18 billion).
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