AB InBev sale of Russian JV stake to Anadolu Efes rejected by authorities
Adds detail on implications of decision in paragraph 8; shares in paragraph 11
LONDON, Aug 8 (Reuters) -Russian authorities have rejected Anheuser-Busch InBev ABI.BR and Anadolu Efes' AEFES.IS deal whereby the world's top beer maker would sell its stake in their Russian joint venture to the Turkish brewer, the companies said on Thursday.
AB InBev, the world's biggest brewer by volume, said in April 2022 it would sell its interest in the venture to Anadolu Efes in order to exit Russia following its invasion of Ukraine. But the deal required regulatory and government approvals.
AB InBev and Anadolu Efes said in separate statements on Thursday that these approvals had not been granted. The Turkish brewer added it had received notice of the decision on Wednesday and it would share updates in due course.
"Anadolu Efes and AB InBev are reviewing the decision," AB InBev's statement said. "The business in Russia continues to operate under the direction of Anadolu Efes management."
The companies did not elaborate on the reason for the rejection.
The news makes AB InBev the latest in a string of companies to have their efforts to exit Russia scuppered by authorities.
Rival brewer Carlsberg had its Russian unit seized after announcing it had agreed to sell it to an undisclosed buyer in 2023, prompting CEO Jacob Aarup-Andersen to say its business had been "stolen".
AB InBev has already suspended sales of its brand Bud in the country, forfeited all financial benefits from the joint venture and taken a $1.1 billion non-cash impairment related to its non-controlling stake. As a result, it is unclear if there are any consequences for the brewer from the Russian authorities' decision.
The companies' 50:50 joint venture, formed in 2018, operates in Russia and Ukraine, where it has 11 breweries and three breweries respectively.
AB InBev and Anadolu Efes' announcement follows a report from a Russian paper earlier this week which said the deal had been rejected, citing sources.
AB InBev's shares were down 0.8% at 0835 GMT. Anadolu Efes' stock was up more than 4%.
Reporting by Emma Rumney in London and Canan Sevgili in Gdansk; editing by Jason Neely and David Evans
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
