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Moscow has rejected a deal that would have seen Turkish brewer Anadolu Efes buy AB InBev’s stake in a $1.3 billion Russian joint venture.
Anadolu Efes, which agreed the deal with the Budweiser and Stella Artois brewery in December, said on Thursday it had been informed by Russian authorities that “the current structure of the transaction has not been approved.”
The companies said they would “review the decision” and that normal operations would continue under the management of Anadolu Efes.
Russia’s decision to block the deal comes at a time of growing concern that the country, which has been sanctioned by the US, EU and others over its war in Ukraine, could seize more foreign assets. Last year, Moscow took control of the Russian subsidiaries of Danone and Carlsberg brewer Baltika.
The FT reported earlier this year that Danone was planning to sell its subsidiary to the nephew of Chechen ruler Ramzan Kadyrov, while Carlsberg remained embroiled in a legal dispute with the Russian state.
NATO member Turkey has distanced itself from its Western allies, maintaining close ties with Russia and refusing to sign sanctions. Turkish President Recep Tayyip Erdoğan met with his Russian counterpart Vladimir Putin just last month.
Anadolu Efes’ deal to buy AB InBev’s stake in their Russian joint venture was seen at the time as a sign that Turkish companies wanted to continue operating in Russia despite pressure from Western governments to leave the country. Russia is an important market for Istanbul-listed Anadolu Efes. Management consultancy KPMG estimated the value of the Russian joint venture at $1.1-1.3 billion at the time the deal was announced.
The pact would have allowed Belgian-Brazilian brewer AB InBev to leave the country. Anadolu Efes and AB InBev founded the joint venture in 2018. The Russian Finance Ministry did not respond to a request for comment on the decision to block the deal.
Shortly after Russia’s large-scale invasion of Ukraine in early 2022, AB InBev said it was giving up “all financial benefits” from the joint venture and recorded a $1.1 billion impairment on the deal. In the event of a sale, the beer giant would retain an indirect stake in Russia through its 24 percent stake in Anadolu Efes.
In the weeks and months following the invasion, numerous Western multinational corporations announced their intention to leave the country or limit their activities. However, those that did not leave immediately faced increasing obstacles.
Western companies have struggled to find buyers whose sales would not violate Western sanctions or be acceptable to Russian authorities. The Kremlin also imposed a mandatory 50 percent discount for Russian buyers acquiring corporate assets from “unfriendly countries” and an “exit tax” of at least 15 percent.
Additional reporting by Max Seddon and Anastasia Stognei
