British brewer Scottish & Newcastle has bought the Foster's brand in Europe for $540 million from Australia's biggest brewer to help target the growing Turkish and Russian markets.
Scottish & Newcastle (S&N) said it would fund the deal with one-third of the money coming from borrowings and the rest from a placing being carried out today.
Foster's Group said it would continue to own its brand in other markets.
Today's deal ends a 1995 licensing agreement with S&N that had locked Foster's into below-market returns from its European beer sales.
S&N said the acquisition, which is expected to be completed in May, would have a neutral effect on earnings per share in the current financial year.
The market has also speculated that Foster's would sell its breweries in Asia, while retaining rights over the brand in that region, as it continues to address its underperforming international beer business.