RUSSIA – Can packaging company Arnest Group has completed the acquisition of Heineken’s Russian operations for €1.
The Dutch firm sold its operations, including seven breweries, to Russia-based packaging and consumer goods business Arnest Group in a deal that will result in a €300 million (US$324.25m loss.
The transaction has received all required approvals, Heineken said in a statement and concludes a process started in March 2022.
There is no buyback or call option to return to Russia, and the sale and financial loss will have a “negligible impact” on Heineken’s earnings per share, the company said.
Putin’s signing of a decree in April that allows for temporary state control over the assets of companies or individuals from unfriendly states — which includes the US and its allies — has complicated efforts by top consumer companies to exit Russia.
Heineken’s successful departure stands in contrast to rival Carlsberg A/S, which saw plans to sell its business in the country upended by the government’s seizure of operations in July. Meanwhile, Anheuser-Busch InBev continues to hold an interest in a Russian beer maker.
Heineken CEO and executive board chairman Dolf van den Brink said: “We have now completed our exit from Russia.
“Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia.
“While it took much longer than we had hoped, this transaction secures the livelihoods of our employees and allows us to exit the country responsibly.”
Heineken said that the responsibility to provide employment guarantees to its 1,800 employees associated with Russian business over the next three years will be taken by Arnest Group.
Heineken has been facing pressure from consumers to leave Russia, which had accounted for about 2% of global sales, and had stated its intention to do so more than a year ago without profiting from a transaction.
In April, the company said it applied for approval from the Russian government to sell the business. It previously recorded total impairment losses of €210 million (US$226.97m) related to its Russia operations.
The new owner won’t have the right to sell the Heineken brand in Russia under the terms of the deal, the CEO said, and the Amstel brand will also be removed from the market.
“We intended to pull as many international brands out as possible so we’re very happy that the Amstel brand, which is the second largest brand, is coming out,” added van den Brink.
Arnest has been the buyer of Western company assets in Russia in the past, acquiring Ball Corp.’s beverage packaging business for US$530 million (US$572.83m) in September 2022.
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