Russia rejects AB InBev’s sale of joint venture stake

Russian authorities have rejected Anheuser-Busch InBev and Anadolu Efes' 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.

(Reuters)