Washington  - US authorities on Friday approved the 52- billion-dollar takeover of beer giant Anheuser-Busch by Belgian firm InBev.

Under the deal, InBev must give up its Labatt brand in the United States. The a Canadian brewed beer is popular in New York state and anti-trust regulators feared a lack of competition there, the US Justice Department said.

The takeover would create the world's largest brewer. InBev, producer of brands like Stella Artois and Beck's, while Anheuser- Busch brews Budweiser and Bud Light.

Anheuser-Busch, the second largest consumer-goods company in the US, initially spurned the offer until the Belgian suitor increased the premium it will play for the US company, which is based in St Louis, Missouri.

The new conglomerate will have a combined global market share of about 25 per cent. (dpa)