SABMiller has agreed to hand its Russian and Ukrainian beer businesses to Anadolu Efes in exchange for a 24% stake in the Turkish brewer.

The deal, announced this morning (19 October), gives both brewers greater scale in the tough Russian beer market. SABMiller, meanwhile, will also get better access to Turkey, where Anadolu Efes has an 89% volume share of the market.  

Anadolu Efes will lead the combined businesses in Russia, where it will be a "strong number two" in value terms behind Carlsberg's Baltika Breweries. In volume terms, the merged business will vye with Anheuser-Busch InBev's Sun InBev business for number two spot.

Anadolu Efes plans to hand 142.1m shares to SABMiller following a capital increase. As a result, SABMiller will hold a 24% stake in the Turkish brewer. In addition, the companies will distribute each other's brands in markets worldwide.  

"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," said SABMiller's CEO, Graham Mackay. "The prospects for these markets are excellent."

Once completed, the deal is expected to add to profits for both companies in the first full year of operation. In Russia, the groups expect to achieve annual synergies of at least US$120m.

Anadolu Efes' chairman, Tuncay Özilhan, said: "We are delighted to join forces with such a strong business partner as SABMiller and to enlarge the Anadolu Efes business in Russia and Ukraine as we believe this will enable us to better capitalize on the potential growth opportunities in our operating region in line with our long term growth plans."

For SABMiller's announcement, click here.