Carlsberg Sells Russian Unit as State Control Ends
Danish brewer Carlsberg has announced an agreement to sell its shares in its Russian unit, Baltika Breweries, after a year of turmoil following Russia’s invasion of Ukraine.
Carlsberg, like many other Western firms, had announced in March 2022 that it would leave Russia, where it employed 8,400 people. However, a year later, Russian President Vladimir Putin placed Baltika under state management, and Carlsberg’s chief executive, Jacob Aarup-Andersen, declared that its Russian business had been "stolen".
Agreement to Sell Shares
With Putin ending state control over Baltika, Carlsberg has reached an agreement to sell its shares in the local company for an undisclosed "cash consideration". The company will also receive Baltika’s shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan.
New Controlling Shareholder
The new controlling shareholder of Baltika Breweries will be a company owned equally by two longstanding Baltika employees, currently holding leading positions in the company.
Transaction Details
The transaction is expected to close "within the next couple of days". Carlsberg’s CEO, Aarup-Andersen, stated, "Since the announcement of our intention to leave Russia in 2022, we have exhausted all options to find a way to achieve a full exit from Russia while protecting our employees, our assets and the value of the Carlsberg business."
Conclusion
The sale of Carlsberg’s Russian unit marks a significant step towards resolving the company’s Russian saga. The agreement will settle "numerous lawsuits" and intellectual property rights issues, and will provide a new beginning for the company in the region.
Frequently Asked Questions
Q: Why did Carlsberg leave Russia in 2022?
A: Carlsberg left Russia in 2022 after the country’s invasion of Ukraine, following the company’s announcement in March 2022.
Q: What happened to Carlsberg’s Russian unit after the invasion?
A: Russia’s President Vladimir Putin placed Carlsberg’s Russian unit, Baltika Breweries, under state management.
Q: What is the agreement to sell shares, and what does it entail?
A: The agreement is for Carlsberg to sell its shares in Baltika Breweries to a company owned equally by two longstanding Baltika employees, and to receive Baltika’s shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan.
Q: What does the sale mean for Carlsberg?
A: The sale will settle "numerous lawsuits" and intellectual property rights issues, and will provide a new beginning for the company in the region.
