Russian Authorities Reject Deal Allowing Budweiser Owner Anheuser-Busch InBev to Exit Country

The logo of Anheuser-Busch InBev pictured outside the brewer's headquarters in Leuven, Belgium, on Feb. 28, 2019. REUTERS/Francois Lenoir/File Photo

Russian regulatory authorities have rejected a proposed transaction between Anheuser-Busch InBev (AB InBev) and beverage company Anadolu Efes to transfer AB InBev’s noncontrolling stake in its Russian joint venture, AB InBev Efes BV, to the Turkish brewer.

The decision marks a hurdle in AB InBev’s strategy to withdraw from the Russian market following the country’s invasion of Ukraine. However, as with many companies attempting to divest from Russia, the deal was contingent on obtaining the necessary regulatory and governmental approvals.

AB InBev, the world’s largest brewer by volume, initially announced in April 2022 its intention to sell its interest in the joint venture to Anadolu Efes, according to statements issued by both companies.

Despite initiating the legal process in December 2023, the companies announced on Aug. 7 that approval wasn’t obtained from the Russian government, prompting a review of the decision by both parties, according to the statements.

The joint venture between AB InBev and Anadolu Efes, established in 2018, operates extensively in Russia and Ukraine, with 11 breweries in Russia and three in Ukraine, according to Reuters.

Despite the setback, Anadolu Efes’s management will continue to oversee the operations of the joint venture’s business in Russia, according to the companies.

In 2022’s announcement about the company’s decision to withdraw from Russia, Ab InBev noted that the company was working to actively support its employees, their families, and humanitarian efforts in Ukraine.

The company said it had provided counseling, housing, and financial aid to displaced employees and their families, and was collaborating with nongovernmental organizations to assist.

AB InBev also brought Chernigivske, a popular Ukrainian beer brand, to several countries, including the UK, Germany, Belgium, France, and others, with plans to expand to more markets.

All profits from Chernigivske sales will fund humanitarian relief efforts, with AB InBev committing at least $5 million to that cause, the company said at the time, noting that it was “wishing for peace.”

The company’s decision follows a pattern of Western companies encountering difficulties in exiting the Russian market.

A notable example is the Danish brewer Carlsberg, whose Russian unit was seized after it announced a sale agreement with an undisclosed buyer. Carlsberg’s CEO described the incident as the business being “stolen.”

In anticipation of exiting Russia, AB InBev had already suspended sales of its flagship brand Budweiser in the country, renounced all financial benefits from the joint venture, and reported a $1.1 billion noncash impairment related to its noncontrolling stake.

Anadolu Efes said in the statement that further updates will be provided as the situation develops.

The announcement by AB InBev and Anadolu Efes confirming the news followed a report from a Russian media outlet earlier this week that said the deal had been rejected, citing unnamed sources.

Reuters contributed to this report.