Anheuser-Busch InBev is to pay $20.1bn to take full control of Grupo Modelo, the Mexican brewer in which it has a 50 per cent stake, as the world's biggest brewer continues to lead consolidation in the beer market. The price, which equates to $9.15 a share and will be paid in cash, is substantially higher than that suggested by analysts when news of the long-anticipated deal broke last week. It is also a 30 per cent premium to Modelo's closing price on June 22 and marks the second-largest announced deal of the year after Glencore's troubled bid for Xstrata. On AB InBev's numbers, spreading it over 100 per cent of the equity, the price translates into an enterprise value multiple of 13 times compared with this year's consensus earnings before interest, tax, depreciation and amortisation, according to Bernstein Research. That is at the top end of multiples for emerging markets acquisitions in the sector, although below the 25 times multiple AB InBev's Brazilian unit AmBev paid for fellow brewer Cervecería Nacional Dominicana this year. Nicole Thain, an analyst at Bernstein, said: "Yes, the price is high but we are not bowled over by it and knew they would have to pay to get the [controlling] family to dispose of it." AB InBev, which currently controls just 44 per cent of Modelo's voting rights, will take on $14bn additional bank borrowing. AB InBev is anticipating annual synergies of $600m, which analysts reckon are achievable in light of the company's record for sweating assets and absorbing prodigious amounts of debt. When Anheuser-Busche was the target of InBev's bid four years ago, it considered taking full control of Modelo as a way to block InBev's bid by making it too large, according to people familiar with the matter. But the Anheuser-Busch board ultimately decided against the deal, and instead extracted a higher price from InBev, paving the way for the creation of the world's largest brewer. Several analysts saw the potential for a takeover two years ago, when Grupo Modelo lost a two-year arbitration case against AB InBev. But Modelo demurred, saying in a letter at the time that "the conclusion of this procedure does not alter the share structure or administration of Grupo Modelo." People familiar with the deal said talks heated up in February, after AB InBev had paid down a substantial amount of debt from the acquisition of Anheuser-Busch and was in a position to take up historically low financing costs. Lazard and other banks including Barclays advised AB InBev, with Skadden Arps providing legal counsel. Grupo Model was advised by Morgan Stanley, with Cravath as legal advisers.