Anheuser-Busch plans to buy out the Craft Brew Alliance for a great prize

Anheuser-Busch InBev SA

BUD, + 0.29%

will continue to buy craft beer frenzy by trying to buy the rest of the listed Craft Brew Alliance Inc.

BREW, + 0.55%

for $ 16.50 per share. Craft Brew Alliance closed Monday's trading at $ 7.33 per share, but the stock shot up more than 120% in afternoon trading to look more like the purchase price. Craft Brew Alliance is known for its brands Kona Brewing, Widmer Brothers and Redhook Brewery, among others. Anheuser-Busch, the producer of Budweiser and other beers with the mass market, has moved heavily into craft beer in recent years, and has previously signed a distribution agreement with the Craft Brew Alliance. Part of the deal included an option to buy the remaining shares, but Anheuser-Busch let the deadline for that deal pass without exercising the original option, instead paying an incentive payment of $ 20 million. The big beer company already owned a stake of more than 31

% in Craft Brew, according to FactSet, and will seek to buy the rest of the shares with cash.