The Australian government has approved global brewing and bottling giant SABMiller's A$9.9 billion ($10.2 billion) acquisition of Foster's, however with certain conditions.(See: Foster's finally accepts SABMiller's $10.2-bn takeover offer)

The conditional approval paves the way for Foster's shareholders to vote on the deal on 1 December.

Australian Federal Treasurer Wayne Swan approved the deal but imposed conditions including requiring SABMiller to keep brewing operations in Australia and not to relocate any brewing facilities offshore to produce beer for Australian domestic consumption.

Among other conditions, SABMiller is also required to continue investing in Foster's. "SABMiller has agreed to a number of undertakings which recognise the significance of Foster's to our economy and to our community, and support Australian jobs," said Swan.

"In addition to Foster's undertakings, I have taken into account SABMiller's plans to strengthen Foster's brand portfolio and work with its local employees to bring its global scale and expertise to the business.

"I also note SABMiller's current intention that Foster's operational employees will remain in their existing roles on the same or substantially similar conditions to those which they currently enjoy," he added.

''Given the local nature of Foster's brewing business and its focus on Australian customers, these undertakings are consistent with our current intentions for the business," UK-based SABMiller said in a statement.

SABMiller added that it has informed Australia's Foreign Investment Review Board that it is aware of the history and heritage of the Cascade brewery in Hobart, and understands its value to the local community.

Foster's Cascade brewery is Australia's oldest operating brewery having started operations in 1824. The Australian regulator was concerned as to what would happen to the 187-year old brewery once it was taken over by a foreign company.

Last week, SABMiller raised its cash takeover offer for Foster's to $5.40 a share after Australian authorities brought out a tax ruling to ensure that Foster's shareholders do not lose because of a capital return tax.

SABMiller expects its biggest ever acquisition, including the acquisition of he remaining 50 per cent of Pacific Beverages now owned by Coca-Cola Amatil, to close by the end of the year, which will give it nearly 50 per cent of the Australian beer market share.

Foster's, which holds 65 per cent of the Australia's beer market and 49 per cent of low-alcohol beers, has been facing intense competition, while sales of its flagship brands Victoria Bitter, Crown and Carlton Draught have seen a decline his year, which Foster's blamed on the domestic market that shrank 7.0 per cent since the second half of 2010.

Victoria Bitter, which generates about A$845 million ($830 million) in annual sales, is losing its main customers, the young generation, who are seeking sweeter and cheaper alternatives.

Headquartered in Melbourne, Australia, and listed on the Australian Securities Exchange, Foster's products are sold in over 45 countries worldwide.

Foster's, maker of the well-known eponymous beer brand, generates a majority of its sales revenue through Carlton & United Breweries (CUB), its Australian and Pacific beer business, with the remainder from International.

CUB is the largest brewer in Australia with a portfolio of brands produced by or licensed to CUB that includes the leaders in the traditional regular, premium domestic and premium international segments.

It is also the largest cider producer in Australia, the largest brewer in Fiji and has a portfolio of spirits, ready-to-drink and non-alcohol brands.

Yjr company's international Beer business generates earnings from the sales, licensing and distribution of its Australian beer brands in markets outside Australia and the Pacific and from a distribution joint venture for the Middle East.