Anheuser-Busch InBev NV may have to give up more control of U.S. beer distribution or even sell a brewery to settle an antitrust lawsuit by the U.S. to block its $20.1 billion takeover of the rest of Grupo Modelo SAB.

AB InBev, the world’s biggest brewer, and U.S. regulators are proceeding with talks on the Justice Department’s objections to the deal, according to people familiar with the matter. The Leuven, Belgium-based maker of Budweiser must decide whether to give more concessions to the government, fight the lawsuit in court, or walk away from the transaction, said Herbert Hovenkamp, who teaches antitrust law at the University of Iowa.