Spain's second-largest brewer, Mahou, is set to buy the French Danone group's controlling stake in another Spanish beer company, San Miguel.

The two companies have both up to now been partly owned by Danone group, through its Kronenbourg brewery division, which will retain a 33% interest in the combined group. The planned move would create a Spanish-controlled group with a one-third share of the domestic market.

The move towards further concentration in the sector comes in response to Heineken which already owns the number three Spanish brewer, El Aguila, and closed the E649m (£393.12m) purchase of market leader Cruzcampo, from Diageo last year. Mahou, which makes Spain's most popular single brand of beer, said the two brewers would continue to keep their separate identities. The deal is expected to be completed before the summer.