Heineken, a Dutch multinational brewing company, has sold all of its assets in Russia to the Arnest group for €1, Forbes cites the company’s press department.
The brewing company has sold all of its remaining assets in Russia, including seven beer production facilities. Those will stop producing Amstel branded beer within six months. For another three years, the buyer will retain licence to produce a number of regional brands “to ensure business continuity and approval of the transaction.”
The deal obliges Arnest to repay the Russian branch’s intra-group €100 million debt to Heineken.
Heineken noted that “the deal would result in an expected total cumulative loss of €300 million.” It does not provide for a buy-back option.
“There will be no Heineken logo or trademark in the future. The legal process to change the name can take several months,” Forbes notes.
Heineken emphasised that the company will not support these brands and will not receive any income, royalties or dividends from Russia.
Jobs at former Heineken factories in Russia will be preserved. Arnest has provided 1,800 employees with job security for the next three years and promised a staff expansion. This was one of the conditions for the government commission to approve the deal.
Arnest Group is Russia’s largest manufacturer of perfumes, cosmetics and household products in aerosol packaging. In particular, it produces disinfectants, antiperspirants, and air fresheners.