FAS approved the merger of “Anheuser-Busch InBev” and “Efes” on the Russian market

FAS pre-approved interrelated mergers of “AB InBev” and “Efes” Breweries in Russia

In September 2017 the companies filed two petitions to FAS to obtain preliminary approval of the antimonopoly body for interrelated actions, as a result of which Russian assets of two brewing groups will be consolidated.

Upon comprehensive examination of the submitted materials and taking into account the findings of an earlier survey of the state of the brewery products market, the antimonopoly body has concluded that consolidating assets of “AB InBev” and “Efes” will not restrict competition on the wholesale market of beer and beer-based beverages within the boundaries of the Russian Federation.

As a result of the petitioned actions, a consolidated group of persons will be formed with around 25% shares of the wholesale market of beer and beer-based beverages. Such changes in economic concentration will create better conditions for developing competition, strengthen motivations of the merger parties as well as their competitors, first of all, “Baltika” Brewing Company” Ltd., that according to the survey findings controls 30.7% of the market of beer and beer-based beverages, for new investments in Russian economy.

On 26 October 2017, Stats-Secretary, Deputy Head of FAS Andrey Tsarikovskiy and Deputy Head of FAS Alexei Dotsenko had a meeting with representatives of “AB InBev” and “Efes” (President for Europe and Near East, “AB InBev”, Stewart MacFarlane; President, “Efes Beer Group”, John Gavin Hudson; Vice-President Legal and Corporate Affairs Europe, “AB InBev”, Maria Rocha Barros; Business Unit President, “AB InBev” Eastern Europe, President of “SAN InBev” JSC, Dmitry Shpakov; Director, Legal and Corporate Affairs, “SAN InBev” JSC, Oraz Durdyev; Senior Manager on Relations with Authorities, “SAN InBev” JSC, Alexander Mazanov). The parties discussed the prospects of industry development, investments in Russian companies under the economic restrictions and sanctions.

Andrey Tsarikovskiy summed up: “Approving the merger will be an additional signal to foreign investors not to be afraid to invest in Russian economy”.