SABMiller enters final stages of tie-up with Anadolu Efes

Drinks giant SABMiller has signed the definitive transaction agreement with Anadolu Group and Anadolu Efes to form a strategic alliance for Turkey, Russia, the Commonwealth of Independent States (CIS), Central Asia and the Middle East.

The terms of the agreement, announced back in October, mean that SABMiller will now transfer its Russian and Ukranian beer divisions (valued at $1.9bn) to Anadolu Efes, the fifth-largest European brewer and the world's sixth-largest Coca-Cola bottler. In return, SABMiller will hold a 24% equity stake in Andolu Efes.

The combined Russian businesses are expected to have a number-two position (in value share terms) in the beer market and yield cost synergies of at least $120m per year as well as additional revenues synergies.

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"Both SABMiller and Anadolu Efes have proved to be successful operators in diverse and challenging emerging beer markets and this strategic alliance will allow both our groups to benefit from each other's expertise, and the combination of our resources," said SABMiller's Chief Executive Graham Mackay (speaking in October).

"Anadolu Efes's leading position in beer and soft drinks in the Turkish market and an alliance for further growth and acquisitions in the CIS and Middle East are highly attractive. The prospects for these markets are excellent," he said.

Control of Andolu Efes will still remain in the hands of the Anadolu Group, while SABMiller will have customary minority protection rights. "Completion of the transaction is subject to receipt of the necessary regulatory approvals," SABMiller announced this morning.