AB InBev, Anadolu Efes to combine Russia, Ukraine units
Anheuser-Busch InBev has reached a non-binding agreement with Anadolu Efes, a brewer in Turkey, regarding a 50:50 merger of AB InBev's and Anadolu Efes' existing Russia and Ukraine businesses. 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. As a result, AB InBev would stop consolidating its operations in Russia and Ukraine and account for its investment resulting from this transaction under the equity method. The name of the combined company would be AB InBev-Efes and both AB InBev and Anadolu Efes would have equal representation on the Board of Directors, with Tuncay Ozilhan, current Chairman of the Anadolu Group and Anadolu Efes, serving as the Chairman. Both AB InBev and Anadolu Efes will work towards agreeing binding transaction documents in due course and further announcements will be made as the process progresses. We anticipate the transaction could 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.