Anheuser-Busch InBev S.A. (ABI.BT) on Wednesday said it reached an agreement to merge its Russia and Ukraine businesses with those of Turkey-based brewer Anadolu Efes Biracilik ve Malt Sanayii A.S.(AEFES.IS).
Under the deal, each brewer would own an equal share of the combined company, AB InBev-Efes. The deal would see AB InBev halt further consolidation of its operations in Russia and Ukraine. AB InBev-Efes will be included in Anadolu Efes's financial accounts. No financial details of the deal were disclosed.
Continue Reading Below
The board of AB InBev-Efes will have equal representation from its parent companies and is to be chaired by Tuncay Ozilhan, the current chairman of Anadolu Group and Anadolu Efes.
Both companies have in principle agreed to nominate Dmitry Shpakov, AB InBev's president for Russia and Ukraine, as chief executive of AB InBev-Efes.
AB InBev and Anadolu Efes said they expect the deal to be completed by the end of the first half of 2018. Until then, both companies' businesses in Russia and the Ukraine will remain separate and operate as normal.
The agreement follows AB InBev's acquisition of a 24% stake in Andolu Efes as part of the Belgium-based brewer's combination with SABMiller in October 2016.
Successful completion of the transaction depends on satisfactory due-diligence checks, as well as regulatory approval in Russia and Ukraine.
Write to Oliver Griffin at email@example.com
(END) Dow Jones Newswires
August 09, 2017 04:59 ET (08:59 GMT)