Diageo and SABMiller have reportedly held talks about breaking up rival brewer Scottish & Newcastle.

As part of the deal, SABMiller would buy S&N's international businesses. Diageo would purchase S&N's UK beer business, while Kronenbourg would be sold to another buyer, according to reports in the Financial Times.

Diageo and SABMiller have been considering the plan for months but have recently been disrupted by a rise in S&N's share price, the report added.