Anheuser-Busch InBev has completed the purchase of Grupo Modelo for $20.1bn to become the largest brewer in the world.

The combined entity will produce around 400 million hectolitres of beer volume annually and will hold five of the top six beer brands of the world, including Corona, Modelo and Pacifico and InBev’s Budweiser, Beck and Stella Artois.

The combination is also expected to generate around $1bn in cost synergies.

With the deal complete, AB InBev now owns approximately 95% of Grupo Modelo’s outstanding common shares.

Through the partnership, Modelo will make its brands such as Corona available outside US and in Mexico, while AB InBev will expand its footprint through Modelo’s distribution network.

AB InBev CEO Carlos Brito said Grupo Modelo has been one of their most important partners for more than 20 years and they are very pleased to evolve their long and successful relationship into this combination.

"We have tremendous respect for Grupo Modelo and its brands, and we are thrilled to welcome our Grupo Modelo colleagues to the global team," Brito added.

"We look forward to realizing our opportunities for growth and bringing our beers to more consumers around the world as we join two world-class brewers."

In a related deal, Modelo has agreed to sell its 50% stake in Crown Imports and sell its Piedras Negras brewery to Constellation Brands of New York, for $1.85bn, which is expected to close on 7 June 2013.