AUSTRALIA'S biggest brewer last night ended its defiance in the face of the hostile approaches from the Anglo-South African giant SABMiller when it accepted a sweetened takeover offer worth $12.3 billion.

Having reiterated its rejection of SABMiller's original $4.90-a-share offer in its annual report released yesterday, Foster's board, led by chairman David Crawford, then threw its support behind a revised deal of $5.5325 per share which includes a 13.25¢ dividend for 2010-11. Mr Crawford has urged shareholders to accept the new deal.

Last drinks … iconic beer brands including VB and Carlton Draught will be in foreign hands. Credit:Reuters

''This is a compelling proposal from SABMiller and represents the value inherent in this iconic Australian company and its brands and people,'' Mr Crawford said in a statement to the stock exchange.

Foster's Australian beer brands include VB, Cascade, Crown Lager and Carlton Draught, and it holds the Australian rights to foreign brands Asahi, Corona and Stella Artois. The company employs about 2300 people.