Carlsberg Group has agreed to sell its shares in Baltika Breweries, completing its exit from Russia in the process.
The brewer has agreed to a buyout that will see “two longstanding Baltika employees” take over the management of the division. It did not disclose the sum paid.
Following the transaction, which is expected to close in the coming days, Carlsberg Group will no longer have any ownership of shares in Baltika Breweries.
As part of the deal, Baltika has also agreed to transfer its shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan to the Carlsberg Group.
“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,” said Carlsberg CEO Jacob Aarup-Andersen. “With today’s announcement, we will settle numerous lawsuits and IP rights issues related to Baltika Breweries.
“Considering the circumstances, we believe it is the best achievable outcome for our employees, shareholders and the continued business.”
Further detail on the financial impact of Carlsberg’s exit from Russia would be published in Carlsberg Group’s 2024 Annual Report, the brewer said.
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It ends a turbulent period for Carlsberg, which was the most exposed of any of the global brewers to Russia prior to the country’s invasion of Ukraine.
Soon after the invasion in February 2022, Carlsberg announced its intention to exit Russia.
It was in the process of selling its stake in the division when Moscow seized control of operations in July 2023 under an order signed by president Vladimir Putin.
The brewer was placed under “temporary management”, prompting Aarup-Andersen to claim the Kremlin had “stolen our business in Russia”.
It terminated license agreements allowing Baltika Breweries to produce, market and sell Carlsberg’s brands including Tuborg and Kronenbourg 1664 in Russia in response, while also impairing the full value of its business in the country.
Current management would now leave Baltika Breweries following the sale, Carlsberg said.
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