Heineken has acquired a brewery in Russia. The Dutch brewer confirmed yesterday (6 July) that it has signed an agreement to acquire 100% of Stepan Razin brewery in St. Petersburg, Russia.

The transaction will be funded from available cash resources and is subject to regulatory approval, Heineken said. The acquisition will be earnings enhancing in 2006 and is value enhancing in 2007.

As agreed by both parties, the acquisition price will not be disclosed, although reports last week suggested that the purchase would cost around US$138m.

The transaction will see Heineken's market share in Russia grow to 10%, with volumes of over 8m hectolitres.

In a statement, Jean François van Boxmeer, member of the executive board of Heineken, said: "With the latest acquisition of the Stepan Razin brewery, Heineken obtains market leadership in St. Petersburg and acquires the leading regional Stepan Razin brand, which has a longstanding heritage and a national potential."

The Stepan Razin brewery has a sales capacity of 2.3m hectolitres. The portfolio consists of the regional beer brands Stepan Razin, Kalinkin and Ordinar, which represented a total volume of 1.4m hectolitres of beer in 2004. National market share of Stepan Razin last year was 1.7%, market share in the north-west region of Russia was 18% and in St. Petersburg the market share was 32%.