Russia has given the green light for the sale of Carlsberg’s assets to VG Invest, a local firm with connections to brewery holdings. This decision follows the seizure of Carlsberg’s stake in Baltika Breweries by the Russian government, which had placed it under temporary management.
The transaction involves the transfer of Baltika’s stakes in Carlsberg Azerbaijan, Carlsberg Kazakhstan, and another subsidiary in Azerbaijan back to Carlsberg. In return, Carlsberg will hand over a brewery asset in Russia, known as Hoppy Union. This deal marks a significant shift in Carlsberg’s operations in Russia, as the company navigates the complexities of exiting the market under stringent conditions imposed by the Russian government.
The sale price reflects a substantial discount compared to the reported value of Carlsberg’s net assets in Russia. This discount is a result of Russia’s tightened exit requirements for foreign companies, which include demanding sharp discounts and taking a portion of the sale price to bolster state coffers.
VG Invest, the buyer, was registered recently and is managed by Yegor Guselnikov, vice president at Baltika. Guselnikov co-owns the Brewery Development Centre with Alexander Tolmachev, who has a background with Heineken in Russia and grain trading firm Demetra. This new ownership structure is expected to bring local expertise and management to the forefront of Baltika’s operations.
Carlsberg’s assets were seized alongside those of Danone, another foreign company facing similar challenges in Russia. The approval of this sale is a critical step for Carlsberg as it seeks to resolve its business interests in the region and move forward under the new ownership.
This development highlights the ongoing challenges and strategic decisions faced by multinational companies operating in Russia amidst geopolitical tensions and regulatory changes. The sale of Carlsberg’s assets to local businessmen underscores the importance of navigating these complexities to achieve a successful exit from the market.
Stay tuned for more updates on this significant transaction and its implications for Carlsberg and the Russian brewing industry.
