Australian Competition and Consumer Commission (ACCC) has given its approval to the £71bn merger of Anheuser Busch InBev and SABMiller.

Approval was given after the ACCC concluded that the merger would not have an impact on the Australian market.

To secure approval, AB InBev served notices to end the agreements with Lion for distribution of Corona beer and its other brands in the country as the regulatory authority had concerns that the proposed merger could bolster partnership between Lion and AB InBev/SABMiller.

ACCC chairman Rod Sims said: "The ACCC has concluded that the proposed acquisition is not likely to substantially lessen competition in the Australian beer market.

"The ACCC considers that the proposed acquisition is unlikely to result in higher beer prices for consumers."

"The ACCC found that the proposed acquisition would not significantly change the current market structure. The two largest suppliers of beer in Australia are Lion and SABMiller, which owns Carlton & United Breweries (CUB).

"While AB InBev’s brands have been successful in Australia, particularly Corona, they have previously been distributed via either Lion or CUB. AB InBev has only a limited direct company presence in Australia and does not brew beer here.

"The ACCC considers that the proposed acquisition is unlikely to result in higher beer prices for consumers."

Following termination of the distribution agreements, concerned beer brands will be distributed by AB InBev/SABMiller’s combined entity in Australia.

Sims said: "The termination of the distribution arrangements therefore resolved the ACCC’s competition concerns."

By securing a clearance from ACCC, AB InBev has overcome a major hurdle in purchasing SABMiller. It expects to close the acquisition by the end of 2016.

The proposed merger is yet to secure clearance in Europe. The European Commission is expected to give clarity on the deal later this month.