Japan’s Asahi Group Holdings is nearing a deal to buy European beer brands Grolsch and Peroni, as reported in Reuters today.

The brands are being sold to address regulatory concerns about the planned merger of SABMiller and AB-Inbev; the two beers are currently both part of SABMiller’s portfolio.

The merger between the two brewing giants, which was first announced in November 2015, would give the combined company approximately 30% of the world’s beer market.

Acquiring the European brands would give Asahi a bigger reach outside of its Japan heartland. The company is likely to pay more than 400 billion yen ($3.5bn) for the two brands. 

Other bidders that expressed interest in the two brands included Thai Beverage of Thailand and San Miguel Corp of the Philippines.