Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Turkish Brewery Efes Gobbles Up Amstar

Turkish-owned Moscow Efes Brewery announced Friday that it plans to acquire the independent Urals-based Amstar brewery in a cash-and-share swap deal analysts said is worth at least $50 million.

Efes will acquire 100 percent of Amstar , including a minority stake held by the European Bank for Reconstruction and Development.

The deal will bolster Efes' 3 million hectoliter capacity by an additional 1.2 million hectoliters. Efes will gain a further 1 million hectoliters this year with the opening of its new plant in Rostov. Efes holds a 3 percent share of Russia's beer market, United Financial Group data showed.

"Efes has said for a long time that future growth would come from the regions. The Amstar acquisition is proof of this," UFG's Alexei Krivoshapko said.

The Amstar deal will see Efes vying locally for seventh place with the PIT brewery this year. Last year PIT, which is owned by U.S. fund Detroit Brewing, was in negotiations for Amstar and is reportedly in talks to acquire Afanasy-pivo in Tver.

About 20 local, independent breweries scattered across the country hold a 0.5 percent market share each in the country's beer sector.

Growth on the increasingly saturated beer market slowed to 11 percent last year and is predicted to grow 7 percent in 2003.

Amstar's Sokol label, a non-alcoholic beer, will join Efes Pilsener and Stary Melnik in Efes' list of local premium beers, the company said in a statement. Amstar's Bely Medved will be marketed as a mid-price beer, while Amstar's Amsterdam Navigator labels will become one of Efes' strong-flavored beers.