Moscow blocks deals between Anatolian Efes and AB InBev

Anadolu Efes and AB InBev established their joint venture in Russia in 2018. The deal, which was originally closed last December, was valued by the consulting company KPMG at between 1.1 and 1.3 billion dollars. This deal would have signaled that Turkish businesses are willing to operate in Russia despite Western sanctions.

Over the past year, Russia has taken control of the local subsidiaries of several foreign companies, such as breweries Danone and Carlsberg Baltika. Now the same could happen to the AB InBev plant, since the Kremlin did not allow Anadolu Efes to buy out the world’s largest beer company from the Russian joint venture.

AB InBev, the Belgian-Brazilian beer company, announced in early 2022, at the start of the invasion of Ukraine, that it would leave Russia. Despite blocking the deal, Anadolu Efes would have retained an indirect interest in Russia through its 24% stake if the sale went through. AB InBev took a $1.1 billion impairment charge on the business and lost all financial benefits from the joint venture.

Exiting the Russian market is a challenge for many Western multinationals, as buyers must be found that comply with sanctions restrictions and are approved by Russian authorities. The Kremlin further complicated the situation with a mandatory 50% discount for Russian buyers and a 15% minimum “exit tax” for companies from “unfriendly countries”.