Budweiser Parent AB InBev Exits Russia, Hands Over Joint Venture To Turkish Partner: Report
Portfolio Pulse from Shivani Kumaresan
Anheuser-Busch InBev SA (NYSE:BUD) has agreed to transfer its stake in a Russian joint venture to Anadolu Efes, a Turkish partner, without immediate payment. Future compensation will depend on the venture's performance, with the transaction valued between $1.1 billion and $1.3 billion. This divestment is part of a broader trend of European companies leaving Russia due to geopolitical tensions. Carlsberg A/S (OTC:CABGY) and Heineken N.V. (OTC:HEINY) have also exited the Russian market, with Carlsberg's local unit seized by Russia and Heineken selling its business at a loss. BUD shares saw a slight increase of 0.30% in premarket trading.
December 19, 2023 | 11:48 am
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NEGATIVE IMPACT
Carlsberg A/S's local unit Baltika was taken over by Russia in July, as part of the country's response to entities from 'unfriendly nations'.
The seizure of Carlsberg's local unit by Russia is a negative event that has likely already been priced into the stock. However, the mention in the context of AB InBev's exit could bring renewed attention to the risks faced by Carlsberg in the region.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Heineken N.V. sold its Russian business in August, incurring a loss of approximately €300 million, as part of its withdrawal from the Russian market.
Heineken's sale of its Russian business at a loss is a negative development, reflecting the financial impact of geopolitical decisions. The mention in the article may remind investors of the costs associated with such exits.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
AB InBev has transferred its Russian JV stake to Anadolu Efes, with future compensation tied to performance. The move aligns with the trend of European companies leaving Russia, and BUD shares have risen slightly in premarket trading.
The divestment from Russia removes geopolitical risk for AB InBev, which may be viewed positively by investors. The slight premarket stock increase suggests a modest positive short-term impact, although the lack of immediate payment and future performance-based compensation adds uncertainty.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100