Waterloo Brewing Ltd. has signed a deal to be bought by the Carlsberg Group for $144 million.

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Under the agreement, Carlsberg has agreed to pay $4.00 in cash for each Waterloo Brewing share.

Waterloo Brewing shares closed at $3.35 on the Toronto Stock Exchange before the deal was announced late Wednesday.

Waterloo Brewing chief executive George Croft says the board of directors is confident that joining Carlsberg is the best long-term solution for the company's employees, partners, customers, consumers and community.

The transaction is expected to close early in the first half of 2023.

The deal requires approval by a two-thirds majority vote by shareholders as well as a simple majority vote by shareholders excluding the votes cast by two executive officers holding a 5.7 per cent stake in the company.

This report by The Canadian Press was first published Dec. 15, 2022.