Turkish brewer Anadolu Efes is set to acquire AB InBev’s stake in AB InBev Efes, a Russia-based joint venture, in a move that will reduce the Budweiser maker's presence in the country to near zero.
According to reports, Anadolu Efes will acquire the stake in the business on a 'no cash' basis, although it will be required to make payments based on the joint venture's future performance.
About AB InBev Efes
AB InBev Efes was formed by Anadolu Efes and AB InBev in 2018, with a view to boosting the presence of both brewers in Russia and Ukraine.
AB InBev owns approximately a quarter of the Anadolu Efes group, which is headquartered in Istanbul and owns the Efes Pilsen brand, which boasts a capacity of 760 million litres of beer annually.
Back in March 2022, in the wake of the invasion of Ukraine, AB InBev announced its decision to relinquish all financial benefits as a non-controlling partner in the AB InBev Efes joint venture in Russia. Subsequently, in April 2022, AB InBev revealed its intention to divest its non-controlling interest in the joint venture.
In August of this year, the group said that it was in 'active discussions' with Anadolu Efes, regarding the potential acquisition of this interest. Consequently, AB InBev de-recognised its investment in AB InBev Efes, leading to a $1.1 billion non-cash impairment charge.
Exiting Russia
In its half-year report, AB InBev expressed doubt that it may be able to fully withdraw from Russia, citing punitive measures implemented by the Russian government.
'As a result of the conflict and international reactions thereto, Russian authorities have also imposed various economic and financial restrictions, including currency controls and restrictions on transacting with non-Russian parties,' it said at the time. 'The implementation or expansion of these sanctions, trade restrictions, export and currency controls and other restrictive measures may make it difficult for AB InBev to divest its non-controlling interest in the AB InBev Efes joint venture or for AB InBev Efes to remit, cash from Russia to other jurisdictions.
'Even though AB InBev is forfeiting all financial benefits from the AB InBev Efes joint venture, these developments have had, and may continue to have, an adverse impact on the company’s business, financial performance and results of operations, and could result in damage to its reputation.'
