Heineken is closing on a deal for Tiger Beer after a lengthy pursuit of the Thai brand’s maker, Asia Pacific Breweries.

The Dutch brewing giant has agreed an improved price of around £2.8bn for the 40% share of APB currently held by Fraser & Neave.

Heineken already held 41.6% of APB and will press ahead with an automatic bid for total control if F&N shareholders back a sale at the new price.

The race for control of APB was complicated by a rival bid from Thai billionaire Charoen Sirivadhanabhakdi, whose ThaiBev company in turn holds a 26.4% stake in Fraser & Neave.

Heineken chief executive Jean-François van Boxmeer said the offer represented “excellent value for Fraser & Neave and APB shareholders”.

He added: “Our Asian headquarters will continue to be based in Singapore, and we remain 100% committed to the growth and success of APB and the Tiger brand, just as we have been for the last 81 years.”