Brewing giant SABMiller has bought Columbian brewer Grupo Empressarial Bavaria for $7.8bn.

The deal for South America’s second largest brewer, in the latest in a long round of consolidation between the main global brewers.

SABMiller beat off competition from Dutch company Heineken.

Bavaria produces and distributes beer, bottled water, juice, malt beverages and soft drinks across Columbia and Peru. It also operates in Ecuador, Bolivia, Chile and Costa Rica.

The deal will create a rival to InBev, which came about after the $11.bn takeover of Brazil’s Ambev by Interbrew of Belgium.