The Carlsberg Group has agreed to sell its shares in Baltika Breweries. As part of the agreement, Baltika Breweries will transfer all of its shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan to the Carlsberg Group.
The transaction is expected to close in the next few days. The Carlsberg Group will receive cash compensation as well as Baltika Breweries’ stakes in Carlsberg Azerbaijan and Carlsberg Kazakhstan. Further details on the financial impact will be disclosed in the Carlsberg Group’s Annual Report 2024.
“Since announcing our intention to exit Russia in 2022, we have exhausted all options to achieve a complete exit while protecting our employees, assets and the value of the Carlsberg business. With today’s announcement, we will resolve numerous lawsuits and intellectual property rights issues related to Baltika Breweries. Considering the circumstances, we believe this is the best possible outcome for our employees, shareholders and the business as a whole,” commented Jacob Aarup-Andersen, CEO of the Carlsberg Group.
The agreement will be a management buy-out. The new controlling shareholder of Baltika Breweries will be a company owned by two long-time Baltika employees who currently hold leadership positions in the company. These two individuals will assume the roles of General Manager and Assistant General Manager, respectively.
As of December 2, Baltika Breweries is no longer under the temporary administration of the Russian state. The current external management, which was appointed by the Russian authorities in 2023, will leave their positions.
Prior to completion, the sale was approved by both the Danish and Russian authorities. With this divestiture, the Carlsberg Group will no longer have any shareholding in Baltika Breweries.
The sale ends a period of uncertainty that began in July 2023, when a presidential decree temporarily transferred control of Baltika Breweries to the Russian state. Subsequently, the Carlsberg Group decided to fully impair the value of its business in Russia and to terminate the licensing agreements that allowed Baltika Breweries to produce, market and sell the Carlsberg brands.
As part of the agreement, the parties will resolve all outstanding legal disputes, including those related to intellectual property rights.
