Anadolu Efes Shares Plummet After Russia’s Management Decree
Anadolu Efes faces a significant drop in shares following a decree transferring its Russian joint venture management to a local firm
Anadolu Efes, Russia, Putin, Anheuser-Busch InBev, Istanbul
İstanbul: So, here’s the scoop. Anadolu Efes, the Turkish beer giant, is really feeling the heat right now. Their shares just took a nosedive, and it’s the biggest drop they’ve seen in over two decades.
It all started when Putin decided to hand over the management of their joint venture with Anheuser-Busch InBev to a local company. Talk about a curveball! The stock fell by 10% on Tuesday alone, making it a total of 19% since the news broke.
And it’s not just Anadolu Efes that’s hurting. Their parent company, AG Anadolu Grubu, and Coca-Cola Icecek also saw their shares drop significantly. It’s a tough time for them in Istanbul.
Now, the joint venture, known as AB InBev Efes Russia, is under the temporary management of a group called Vmeste. The details are a bit murky, but this move came after a deal that was supposed to make Anadolu Efes the sole owner of the Russian business.
In response, Anadolu Efes said they’re going to take a good look at the situation and figure out their next steps with their partner. They’re not just sitting back and letting this happen.
JPMorgan even downgraded their bonds, saying that Russia was a huge part of their earnings. If this management change sticks, it could really mess with Anadolu Efes’s financial health.
This isn’t the first time Russia has taken control of foreign companies’ assets. They’ve done it before, especially when they think there are better offers on the table. It’s a tricky game, and it’s got everyone on edge.
Last year, Putin also took over management of a busy airport from foreign investors, only to give it back when a deal was struck. It’s all about the negotiations, I guess.