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UPDATE 1-Anheuser-Busch to buy out Craft Brew Alliance in $321 million deal

(Adds details on deal, industry background, shares)

Nov 11 (Reuters) - Brewer Anheuser-Busch Inbev NV will buy the rest of Craft Brew Alliance that it does not own in a deal valuing the Portland-based brewing company at about $321 million, the two companies said on Monday.

Shares of Craft Brew Alliance soared 122.6% to $16.32 after the bell, hovering near the offer price of $16.50 in cash.

The deal is a reversal in stance by the world's largest brewer, which owns 31.2% stake in Craft Brew and had said in August it would not buy out the company.

Global brewers are facing several challenges in large developing markets in Asia, Latin America and Africa even as people consume less beer in Europe and the United States.

Craft Brew's portfolio of regional breweries and lifestyle brands is an addition to Anheuser-Busch and will help fuel the growth of craft beer category in the competitive beer industry in the United States, Anheuser-Busch said.

The deal is expected to close in 2020, Craft Brew said.

(Reporting by Trisha Roy in Bengaluru; Editing by Arun Koyyur)