Sweeping job cuts across the beer industry loomed today as Belgium's InBev closed a £26 billion takeover deal for US giant Anheuser-Busch - the maker of Budweiser - after months of wrangling.

The deal to bring together the makers of Stella Artois and Bud puts intense pressure on SABMiller, the London-based brewing giant that has now lost its position as the world's biggest seller of beer. Analysts say tens of thousands of jobs could go in the beer trade in the next few years as the economy shrinks and the big players search for cost savings.

SABMiller, which makes Coors, Miller and Peroni, employs 70,000 worldwide. It will be expected to respond to this takeover. Harry Schuhmacher of industry newsletter Beer Business Daily said the brewing industry is entering an era where cost cuts will be more important than market share.

"It's been a pretty fat industry. Everybody has enjoyed a lot of perks and there's a lot of people in the industry, probably too many," he said.

Anheuser and InBev will together own more than 300 brands, some of which they are expected to ditch. Carlos Brito, the InBev boss who will head the new company, said: "Together, Anheuser-Busch and InBev will be able to accomplish much more than each can on its own."

InBev first offered £23 billion but had to up its bid in the face of intense opposition from US politicians. It has agreed Budweiser's headquarters should remain in St Louis, Missouri, in an attempt to dilute concerns about a foreign takeover. InBev predicts cost savings of £750 million a year, but claims job losses will be kept to a minimum. There is notmuch overlap between the two businesses - Anheuser controls half the US market while InBev is strong in Europe and Latin America.

Anheuser will have two representatives on the board of the combined group, probably including chief executive August Busch IV. The closing of the deal is something of an embarrassment for Busch, who said in April that a deal wouldn't happen "on my watch".

The pace of consolidation in the beer industry is likely to continue. Scottish & Newcastle, the UK's largest brewer, was recently bought by Heineken and Carlsberg.