Russian Authorities Reject AB InBev and Anadolu Efes’ Russian Joint Venture Deal

Russian authorities have rejected the proposed deal between Anheuser-Busch InBev (AB InBev) and Anadolu Efes, whereby AB InBev, the world’s largest beer maker by volume, intended to sell its stake in their Russian joint venture to the Turkish brewer. The deal was part of AB InBev’s plan to exit Russia following the country’s invasion of Ukraine.

Regulatory Approvals Not Granted:

The companies announced on Thursday that the transaction’s necessary regulatory and government approvals had not been granted. Anadolu Efes stated it received the rejection notice on Wednesday and will provide updates as necessary. AB InBev confirmed that they are reviewing the decision and noted that the business in Russia continues to operate under Anadolu Efes management.

Neither company provided specific reasons for rejecting the deal. The failure to secure approval is part of a broader trend in which several companies have faced obstacles in their efforts to exit the Russian market.

Impact on AB InBev and Anadolu Efes:

AB InBev has already responded to the geopolitical situation, including suspending sales of its Bud brand in Russia, forfeiting all financial benefits from the joint venture, and taking a $1.1 billion non-cash impairment related to its non-controlling stake in the joint venture. The implications of the Russian authorities’ decision on AB InBev’s broader strategy remain unclear.

This situation mirrors the challenges faced by other international companies in exiting Russia. For example, rival brewer Carlsberg had its Russian unit seized after announcing a sale to an undisclosed buyer in 2023, which Carlsberg’s CEO described as having been “stolen.”

Current Stock Market Reactions:

Following the announcement, AB InBev’s shares declined 0.8% at 0835 GMT, while Anadolu Efes’ stock increased more than 4%.

Established in 2018, the joint venture operates breweries in Russia and Ukraine, with 11 facilities in Russia and three in Ukraine. The partnership has been a significant part of both companies’ regional operations.