Brewer AB InBev to sell its interest in Russia

div classBodysc17zpet90 cdBBJodivpBRUSSELS Reuters – AnheuserBusch InBev said on Friday it would sell its stake in Russian jointventure AB InBev Efes which will result in a 1.1 billion impairment charge in its first quarter results.p

pThe announcement by the worlds largest brewer, based in Belgium, comes after similar moves from its rivals Carlsberg and Heineken.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pIn March, AB InBev suspended sales of its Budweiser brand in Russia and had forfeited financial benefit from its Russian JV, following the lead of other major brewers in reaction to Russias invasion of Ukraine, which Moscow dubs a “special operation”.p

p“AB InBev today announced that it will sell its noncontrolling interest in the AB InBev Efes joint venture and is in active discussions with its partner, Turkish brewer Anadolu Efes, to acquire this interest,” AB InBev said in a statement.p

pAB InBev has a 24 stake in Anadolu Efes, part of its 2016 purchase of its next largest rival SABMiller. They formed the AB InBev Efes joint venture in 2018, combining their respective Russian and Ukrainian businesses. p

pThe joint venture has 11 breweries in Russia, employing 3,500 people and three in Ukraine, employing 1,800. Carlsberg is the leading Western player in Russia, followed by AB InBev.p

pThe Danish brewer said on Thursday its decision to sell its business in Russia would result in a writedown of about 1.39 billion. p

pDutch rival Heineken has said its Russia exit would amount to related charges of about 400 million euros 434 million.p

pAB InBev also said it had introduced Chernigivske, Ukraines most popular beer brand, to many countries, including Britain, Germany, Belgium, France and the Netherlands.p

p“All profits from the sale of Chernigivske will go to support humanitarian relief efforts and AB InBev is guaranteeing at least five million dollars of support from this humanitarian initiative,” it said.p

p1 0.9224 eurosp

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pp Reporting by Benoit Van Overstraeten additional reporting by Philip Blenkinsop in Brussels editing by Marine Strauss and Jason Neelyp

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