Interbrew's rating has been raised, following confirmation it is in talks with AmBev. Bank Degroof has today moved its rating on the Belgian brewer to "hold" from "reduce".

In a note, the bank said: "A merger between the two entities is not to be excluded since the companies' geographical activities perfectly fit together."

Interbrew has today announced that it is "in discussions" with AmBev. According to the Belgian brewer, the talks with Brazil's Interbrew "may lead to a significant transaction." In a statement, Interbrew warned that: "Currently no agreement has been reached between the parties.

Rumours developing over the last two months have suggested that a deal was imminent between the two companies. A merger would create one of the world's largest brewers, with sales amounting to about €10 billion (US$12.48 billion), according to analysts.