Russian authorities have rejected Anadolu Efes’ move to buy Anheuser-Busch InBev’s stake in their Russian joint venture.
A statement from the Efes Pilsen producer today (8 August) indicated it had received a “notification” on 7 August indicating “the Russian regulatory authorities have not approved the current structure of the transaction”.
AB InBev's statement, also issued today, noted that “approvals were not obtained.”
Anadolu Efes said that it would now be “reviewing the authorities' decision together” with the Leffe brewer and that further “updates will be duly announced”.
Both companies confirmed that in the meantime, the venture would continue to be managed by Anadolu Efes.
Anadolu Efes declined to speak further on the issue. Just Drinks has also approached AB InBev for comment.
News of the rejection first emerged on Tuesday (6 August) from the Russian newspaper RBC.
A government commission, chaired by finance minister Anton Siluanov had been said to have stopped the deal from being passed in a meeting on 20 June.
Sources close to the matter did not specify the reasons for the refusal to RBC.
In an official statement at the time, Anadolu Efes said it had received no “official response as such”.
Agreed last December, the deal would see Efes Brewing International, a subsidiary of Anadolu Efes, snap up AB InBev’s 50% share of their AB InBev Efes venture.
When the deal was first agreed, AB InBev said “no amount will be paid on closing” but added: “Any payments received by ABI after completion will be subject to additional regulatory approvals and are expected to be not material.”
In a separate filing, Anadolu Efes indicated a valuation had been set at between $1.1bn and $1.3bn. According to Bloomberg, the valuation had been set by KPMG following a request from Anadolu Efes.
AB InBev and Anadolu Efes formed their joint venture in 2018. The business has 11 breweries in Russia, selling beer under brands including Klinskoe and Spaten.
In April 2022, weeks after Russia's invasion of Ukraine, the Hoegaarden brewer announced its plan to sell its stake in the venture and the beginning of negotiations with Anadolu Efes. In light of the talks, production and sales of AB InBev's flagship brand Budweiser, marketed as ‘Bud’ in Russia, ceased.
AB InBev recorded a $1.1bn non-cash impairment charge in the non-underlying share of results of associates as part of its results for the first quarter of 2022.
