By Nathan Meyer, compliance consultant, for Eurasia Business, June 23, 2023

The Danish brewing corporation Carlsberg Group has signed an agreement to sale its Russian business, which is represented by Baltika Breweries LLC, based in Saint Petersburg (registration number : 1147847032838).

“Following our decision last year to sell our business in Russia and the subsequent extensive process of separating the business from the rest of the Carlsberg Group, Carlsberg today signed an agreement to sell its Russian business,” the group said in a statement.

Carlsberg clarifies that the separation of its Russian assets was very complex. The operation included about 150 workflows for business functions and investments in brewery equipment and IT infrastructure in markets outside Russia in the amount of more than 150 million Danish crowns.

“The transaction is subject to regulatory approval in Russia. This includes submitting applications to a government commission for its approval. In addition, the transaction is subject to several customary conditions, including regulatory approval and the fulfillment of certain conditions in a number of jurisdictions,” the press release said.

Consequently, the timing of the final completion of the transaction remains uncertain, stated the Danish corporation.

The representative of the Carlsberg Group did not comment on the information about the potential buyer, but noted that before that the company had checked that interested buyers were not on the Western sanctions lists. The Danish authorities have already agreed on the deal itself and the application for the acquisition of Baltika, Carlsberg said.

The sale agreement will not affect expected revenues in 2023, according to a press release.

According to a press release from Baltika, until the completion of the transaction, the brewing company plans to continue its operational and commercial activities in the current mode, as well as maintain obligations to partners and social guarantees for employees.

Carlsberg announced plans to leave the Russian market in March last year. In addition, he suspended investments and exports to the Russian Federation, refused to advertise on the Russian market and stopped producing beer here under his flagship brand Carlsberg.

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The Danish corporation owned a stake in the brewing company “Baltika Breweries LLC” since 2000 and in 2008 Carlsberg group became the majority shareholder (and then the only one, buying shares from the stock exchange and delisting).

“Baltika”

With headquarters in Saint Petersburg, Baltika is the second largest brewing company in the Russian Federation and operates eight factories in Russia.

The company’s revenue in 2022 increased to 100.7 billion rubles from 82.58 billion rubles in 2021, net profit increased 1.9 times, to 9.952 billion rubles, according to the financial statements filed from the Russian companies register. Last year, Baltika produced 197.42 million decaliters of products, which is 4.7% less than in 2021.

As reported, the Dutch brewing corporation Heineken also announced plans to withdraw from the Russian market. Another foreign manufacturer, the Belgian brewing concern Anheuser-Busch InBev (AB InBev), has decided to sell its non-controlling stake in the joint venture AB InBev Efes, which combines the assets of AB InBev and Turkish Anadolu Efes in the Russian Federation and Ukraine. AB InBev is in talks with Anadolu Efes to buy out a stake, according to business sources.

AB InBev Efes has been the leader of the Russian beer market since 2019.

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