WASHINGTON — The U.S. Justice Department has ordered Belgian brewer InBev to sell its American Labatt operations before it can proceed with the US$52-billion acquisition of fellow brewer Anheuser-Busch.

It wasn't immediately clear how that will affect Labatt Canada, which is a related but separate subsidiary of InBev.

The Justice Department says it will have to sell the U.S. Labatt operations because the deal could mean higher beer prices for beer in the New York cities of Buffalo, Rochester and Syracuse.

In those cities, Anheuser-Busch's Budweiser brands and InBev's Labatt brands are the two biggest-selling beers lines, which means the merged company would be competing with itself.

InBev has to sell Labatt U.S.A., along with a license to brew, market, promote and sell Labatt beers for consumption in the United States.

"This divestiture will ensure that consumers will continue to benefit from the significant competition between the merging companies in upstate New York," Deputy Assistant Attorney General Deborah A. Garza said in a statement.

InBev and Anheuser-Busch don't compete in most other beer markets around the country. InBev brews Stella Artois, Beck's and Lowenbrau.

The Justice Department gave its blessing to the beer merger just two days after Anheuser-Busch shareholders approved the merger, which still is subject to regulatory approval in Britain and China.

Additionally, 10 angry beer drinkers in September filed a federal lawsuit in St. Louis, asking a judge to block the deal that they said violates antitrust law, regardless of the Justice Department's approval.

The new company will be known as Anheuser-Busch InBev. It brings about the end of the more than 150 years of family rule of the St. Louis-based Anheuser-Busch, though the newly combined company's North American headquarters will stay there.

InBev has said it will keep open all 12 of Anheuser-Busch's North American breweries.

August A. Busch IV, Anheuser-Busch's president and chief executive, will be on the new company's board but in a non-executive role. He has said decision to sell the nation's largest brewer was a difficult one.