The brewing conglomerate, Interbrew, has announced that it has won the support of the City of Hannover in its bid for the brewer based in the city, Gilde Brauerei.

The City of Hannover owns a 10% stake in Braudergilde Hannover, which is the parent company of the Gilde Brauerei business, Germany's fifth largest beer producer.

"Subject to clearance of the competition authorities, this clears the way for a successful completion of the Gilde acquisition, which will be an important milestone in Interbrew's development strategy in Germany," said Interbrew's CEO, Hugo Powell.

The City of Hannover had previously said that it planned to file legal proceedings against Brauergilde alleging that it failed to gain approval from a sufficient number of shareholders for the proposed €523m sale to Interbrew.