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Russian authorities have blocked the deal in which Turkish brewer Anadolu Efes had agreed to buy AB InBev’s stake in their Russian joint venture, both companies have confirmed.

In April 2022, AB InBev revealed its plans to sell its non-controlling stake in the joint venture, AB InBev Efes, in order to exit the Russian market following Russia’s invasion of Ukraine.

The joint venture was formed in 2018 and combines the two beer companies’ Russian and Ukrainian businesses. According to Reuters, AB InBev had already suspended sales of its Bud brand in Russia and forfeited all financial benefits from the JV. It had reported a $1.1 billion non-cash impairment as a result of the deal with Anadolu Efes.

The deal was agreed upon by both businesses in December 2023, but was subject to regulatory and government approvals.

On Thursday 8 August 2024, AB InBev and Anadolu Efes published separate statements announcing that the approvals were rejected. Anadolu Efes revealed that according to a notification received by the company the previous day, the Russian regulatory authorities had not approved the transaction’s current structure, though further details as to why were not disclosed.

AB InBev’s statement reads: “Anadolu Efes and AB InBev are reviewing the decision. The business in Russia continues to operate under the direction of Anadolu Efes management.”

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