AB InBev to merge with Anadolu Efes

09 August, 2017

Anheuser-Busch InBev, the world’s largest brewer, has reached a non-binding agreement with Anadolu Efes to merge its existing Russia and Ukraine businesses.

AB InBev is headquartered in Belgium while Anadolu Efes is the leading brewer in Turkey, and the 50:50 merging of the Eastern European branches will be rebranded as AB InBev-Efes.

“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,” said Carlos Brito, CEO of AB InBev.

The announcement of this non-binding agreement follows AB InBev’s acquisition of a 24% stake in Anadolu Efes as part of the company’s combination with SABMiller, which completed in October 2016.

The transaction remains conditional on the completion of satisfactory due diligence and is subject to regulatory approvals in Russia and Ukraine.

Following the closing of the intended transaction, the combined business would be fully consolidated in the Anadolu Efes financial accounts.

Tuncay Özilhan, current chairman of the Anadolu Group and Anadolu Efes is set to serve as chairman of the newly branded business.

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.”  

Both AB InBev and Anadolu Efes have agreed in principle to nominate Dmitry Shpakov, the current president of AB InBev Russia and Ukraine, as CEO for AB InBev-Efes.

The deal is expected to be complete by the end of H1 2018. Until completion of the transaction, both AB InBev and Anadolu Efes’ businesses in Russia and Ukraine remain separate and continue business as usual.

Figures according to Euromonitor International:

  • In 2016, Russian consumed 7.68 bn litres of beer, down from 10.3 bn in 2011

  • The Russian beer market is worth US$ 7.9bn, down from 12.2bn in 2011

  • Beer sales are estimated to continue declining recording a -2% total volume CAGR, falling to 6.9bn litres in 2021

  • AB In Bev is the second leading beer company in Russia (11.8% of the market), following Carlsberg (31.8%)

  • In 2016, Ukranians consumed 1.9 bn litres of beer, down from 2.9 bn in 2011

  • The Ukranian beer market is worth US$ 1.87bn, down from 1.75bn in 2011

  • AB In Bev is the second leading beer company in Russia (27.5% of the market), following Carlsberg (33.1%)

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