Anheuser-Busch InBev (AB InBev) is merging its operations in Russia and Ukraine with Turkey's brewer, Anadolu Efes.
The companies plan to merge their businesses in a 50-50 merger and create a new company to be known as AB InBev-Efes.
The move follows AB InBev’s 24% stake acquisition in Anadolu Efes, as part of its merger with SABMiller in last October.
The present transaction is conditional and will be honoured only after due diligence, while being subject to Russian and Ukrainian regulatory approvals.
According to AB InBev, by combining the businesses with Anadolu in Russia and Ukraine, the two can strengthen their position in the markets, while laying foundation for potential future growth.
The combined businesses are poised of leading the Russian and the Ukrainian markets by offering a wide range of brands and products for beer patrons. The combination can also strengthen AB InBev’s relationship with Anadolu Efes, while increasing the value of its stake, said AB InBev.
When the transaction will be completed, the new businesses will be fully integrated into Anadolu Efes’ financial accounts. And, AB InBev will stop consolidating operations in Russia and Ukraine.
AB InBev stated that the new business will have the name, AB InBev-Efes. Both AB InBev and Anadolu Efes would have equal representation on the board of directors with, Anadolu Group and Anadolu Efes current chairman Tuncay Özilhan, serving as the chairman.
The two companies have also agreed in principle to nominate AB InBev’s president Dmitry Shpakov as the CEO of the new company.
AB InBev CEO Carlos Brito said: “Today’s announcement is a significant step in furthering the strategic partnership of AB InBev and Anadolu Efes and we look forward to a successful combination delivering a broader range of beer choices to consumers in both Russia and Ukraine.”
Anadolu Group and Anadolu Efes chairman Tuncay Özilhan said: “We are delighted to further enhance our relationship with AB InBev and believe that the combination of our respective businesses, expertise and best practices in these markets will enable us to better capture the potential growth opportunities and add significant value to both Anadolu Efes and AB InBev Shareholders.”
