Anheuser-Busch InBev will sell its stake in a Russian joint venture, taking a $1.1 billion hit as the world’s largest brewer joins the global move to exit operations following the country’s invasion of neighboring Ukraine.
Leuven, Belgium-based AB InBev said it will dispose of its holding in the AB InBev Efes venture, adding that it’s already in “active discussions” with partner Turkish brewer Anadolu Efes about buying the stake, in a statement Friday. Shares in AB InBev dropped 1.4% in early trading. Anadolu Efes gained as much as 5.1% in Istanbul, the highest since December.
The move comes in the wake of decisions across the beer industry to halt operations in Russia. Danish brewer Carlsberg A/S on Thursday cut its earnings guidance and said it’s facing a $1.4 billion writedown as it moves ahead with plans to exit Russia, while Amsterdam-based Heineken NV said in late March it plans to sell its business in the country.
Read the latest news on industry responses to the Russia-Ukraine war.
AB InBev said a request to suspend the license for production and sale of the Bud brand in Russia will also be part of a potential deal for the Russia JV.
The company had previously announced that it would forfeit all financial benefit as a non-controlling partner from the venture, and will report the resulting $1.1 billion non-cash impairment as part of its first-quarter results.