Russian authorities have blocked the proposed sale of ABInBev's stake in its Russian joint venture to Turkish brewer Anadolu Efes. This decision represents a significant setback for AB InBev, the world's largest brewing company, as it seeks to divest its interests in Russia.
AB InBev, which entered into the joint venture with Anadolu Efes in 2018, came under immense public pressure after Russia invaded Ukraine and Western states imposed sanctions on companies still operating in Russia. Consequently, many foreign companies abandoned their operations or sold them to Russian partners. Initially reluctant to do so and facing much public criticism, AB InBev finally announced in April 2022 its intention to sell its stake to Anadolu Efes, Turkey's leading brewing group (inside.beer, 22.4.2022).
However, the sale required the approval of the Russian government, which has now officially rejected the deal. Anadolu Efes confirmed receiving the notification from Russian authorities regarding the refusal.
"Anadolu Efes and AB InBev are reviewing the decision," AB InBev said in a statement. "The business in Russia continues to operate under the direction of Anadolu Efes management."
This development adds complexity to the brewing landscape in Russia, where international companies face heightened scrutiny and regulatory hurdles. Anadolu Efes, which operates extensively in the region, will now have to reassess its strategy in light of this decision.
AB InBev's efforts to sell its stake align with its broader strategy to streamline operations and focus on core markets. The refusal from Russian authorities means AB InBev will need to explore other options, potentially including operational restructuring or finding alternative buyers that might gain regulatory approval. The brewing industry, facing pressures from various fronts, will be watching closely to see how both AB InBev and Anadolu Efes navigate this regulatory impasse and what steps they will take next.
In 2023, after Carlsberg announced an agreement to sell its Russian unit to an undisclosed buyer, the unit was seized, prompting CEO Jacob Aarup-Andersen to declare that their business had been "stolen" (inside.beer, 1.11.2023) and to terminate all license agreements with its former subsidiary (inside.beer, 3.10.2023).
