Second-biggest brewer worldwide completes withdrawal from Russian market
Date
8/27/2023 8:50:10 AM
(MENAFN) The second-biggest brewer in the world, Heineken of the Netherlands, said on Friday that it had successfully completed its withdrawal from the Russian market.
The firm's page reports that the assets have been purchased by the Russian company Arnest Group, that also controls a sizable can packaging industry and makes cosmetics and household goods.
A symbolic €1 (USD1.08) was exchanged for all of the shares in the transaction. The deal “concludes the process Heineken initiated in March 2022 to exit Russia.” according to the business, and it got all necessary approvals from the Russian government.
The seven local breweries and all existing Heineken properties in the nation are going to be given to the new owner. The agreement did not provide Heineken the option to repurchase the company. The transaction resulted in “an expected total cumulative loss of €300 million (USD324.8 million),” according to the company. according to Heineken.
For the following 3 years, Arnest Group guaranteed jobs for all 1,800 local employees of Heineken. Additionally, the corporation has agreed to pay the Dutch brewer's approximately €100 million (USD107.95 million) past intercompany debt owed by the Russian company.
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