Foster's board has finally recommended its sale to SABMiller in a deal that values Australia's largest brewer at 9.9bn Australian dollars (£6.5bn).
Fosters had rejected SAB's previous bid worth A$9.5bn, saying it undervalued the company.
However, the Foster's board said it would be recommending the latest offer to its shareholders.
Shareholders will now be asked to vote on whether to accept the offer.
SAB said the deal would give it access to Australia's "strong economic growth prospects".