Heineken has finished its transaction to sell its Russian operations to manufacturer Arnest Group, at a price of one euro, for 100% of the shares. .“We have now completed our exit from Russia,” said Heineken CEO and Chair Dolf van den Brink in a Friday press release. .“Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia.” .Heineken said the transaction has received all of the required approvals and concluded the process initiated in 2022 to exit Russia, incurring an expected cumulative loss of 300 million euros. .Arnest Group owns a major can packing business and is the largest Russian manufacturer of cosmetics, household goods, and metal packaging for the fast moving consumer goods sector. .Heineken added all remaining assets, including seven breweries in Russia, will transfer to the new owners. It said Arnest has taken responsibility for the 1,800 employees in Russia, providing employment guarantees for the next three years. .In addition to the brand which was removed from Russia in 2022, production of Amstel will be phased out within six months. There is no call option to return to it. .As a result of exiting Russia, Heineken expected total non-cash exceptional losses amounting to 300 million euros, including cumulative foreign exchange losses relating to Russia recorded in equity..This includes a commitment from Arnest to repay the historical intercompany debt of about 100 million euros due in instalments..The transaction will have a negligible impact on earnings per share and its full year 2023 outlook is unchanged from the sale..“While it took much longer than we had hoped, this transaction secures the livelihoods of our employees and allows us to exit the country in a responsible manner,” said van den Brink. .Beer drinkers, especially in the United States, were expected in May to find themselves short of their favourite drinks this summer because of the Bud Light boycott..READ MORE: FROSTY POPS IN PERIL: Potential exists for beer shortage this summer.While Anheuser-Busch collapsed, its competitors enjoyed the windfall, adding US$3.2 billion in market value as they filled the void created by the Bud Light boycott. .Heineken made forays into the light beer market, with plans to spend US$100 million to promote Heineken Silver in the US.
