Carlsberg Group has found a buyer for its Russian assets

In March 2022, Carlsberg announced the sale of the Russian business, which includes eight Baltika breweries. According to the company, a buyer for the assets has been found, now the deal must be approved by the authorities.

The Danish brewing corporation Carlsberg Carlsberg Group has signed an agreement on the sale of its Russian business, which is represented by the brewing company Baltika, according to a statement on the concern's website.

“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 statement said. The company did not name the price and the buyer.

Carlsberg notes that the Russian business spin-off was "very complex" and involved about 150 workflows for business functions and investments in equipment and it infrastructure in markets outside of Russia in the amount of more than 150 million Danish kroner (1.8 billion rubles). .

“The deal 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 usual conditions, including regulatory approval and the fulfillment of certain conditions in a number of jurisdictions,” the company said.

Until the completion of the transaction, Carlsberg brewery will continue its operational and commercial activities in the current mode, as well as maintain obligations to partners and social guarantees for employees. The timing of the final completion of the transaction remains uncertain, and the sale agreement will not affect expected revenues in 2023, the concern said.

In Russia, Carlsberg owns the Baltika breweries, which produce beer under the brands Baltika, Arsenalnoye, Zatecky Gus, and others. In March last year, the company announced its intention to completely withdraw from the Russian market, and separate the breweries it owns into a separate business. The HEAD of Carlsberg Kees t'Hart expressed the hope to sell the business in Russia by the summer of 2023.

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In April last year, the Danish Berlingske reported that Chernogolovka, a non-alcoholic beverage manufacturer, showed interest in acquiring Baltika. Also, the Israeli CBC Group was named as a potential buyer. Kommersant wrote that Baltika could be sold to the Belgian-Turkish joint venture AB InBev Efes, which operates 11 factories in Russia and produces beer under the brands Klinskoye, Beliy Medved, and Sibirskaya Korona, among others.

Baltika said that Carlsberg did not intend to sell individual plants, but wanted to sell the company as a whole. It operates eight factories, including those in St. Petersburg , Voronezh, and Novosibirsk, which produce over 55 brands of beer. Now the company has three co-owners: Carlsberg Sverige AB (98.56%), Hoppy Union LLC (1.35%) and Carlsberg Deutschland (0.09%). The net profit of Baltika in 2021 amounted to 5.34 billion rubles.