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AB InBev, Anadolu Efes close merger of businesses in Russia and Ukraine

DBR Staff Writer Published 03 April 2018

Anheuser-Busch InBev (AB InBev) has completed the merger of its operations in Russia and Ukraine with Turkish brewer Anadolu Efes.

Anadolu Efes, together with its subsidiaries and affiliates, manufactures and markets beer, malt and soft drinks across a geography including Turkey, Russia, the CIS countries, Central Asia and the Middle East.

The company employed 14,188 people as of 31 December.2017, including both beer & soft drink operations.

After the original announcement of the transaction on 9 August 2017, the companies have secured all required regulatory approvals in Russia and Ukraine and have signed appropriate binding transaction deals.

The companies did not disclose the financial terms of the transaction.

Last year, it was announced that the merged company will take the name AB InBev Efes and will be equally represented by the board of directors from the two companies.  

The merged company is expected to build on the strengths of the combined AB InBev and Anadolu Efes portfolio of brands, which includes both international as well as local brands.

The combination is expected to lead the two markets with a portfolio of brands and boarder range of beers for consumers. In addition, the combination is expected to enhance AB InBev’s relationship with Anadolu Efes.

AB InBev purchased a 24% stake in Anadolu Efes as part of its combination with SABMiller, which was completed in October 2016.

The combined business will be fully consolidated in the financial accounts of Anadolu Efes. As a result, AB InBev will stop the consolidation of the operations and account for its investment in AB InBev Efes under the equity method, the company stated.

When the transaction was announced, Anadolu Group chairman Tuncay Özilhan stated that the combination of the companies' respective businesses, expertise and best practices in the markets will allow them to better capture the potential growth opportunities and add significant value to both the companies' shareholders.

Image: AB IBev bottling. Photo: Courtesy of Anheuser-Busch InBev.