Carlsberg has agreed to sell Baltika Breweries, its business in Russia, marking the Danish brewer’s exit from the country.
Moscow seized Carlsberg’s stake in Baltika Breweries in July 2023, placing the assets under the “temporary management” of government property agency Rosimushchestvo. Carlsberg, which in the wake of Moscow’s invasion of Ukraine had said it would leave Russia, had been in the process of selling the business.
In a statement issued today (3 December), the Tuborg brewer described the deal for Baltika Breweries as “a management buy-out”.
Carlsberg said: “The new controlling shareholder of Baltika Breweries will be a company owned equally by two longstanding Baltika employees, currently holding leading positions in the company.”
The financial terms of the deal were not disclosed. However, Carlsberg said it would receive “a cash consideration” as well as Baltika Breweries’ shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan.
Carlsberg said it would release “more details about the financial impact” alongside its 2024 annual report.
“Since the announcement of our intention to leave Russia in 2022, 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,” Carlsberg CEO Jacob Aarup-Andersen said.
“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.”
In October 2023, the company, calling Moscow’s move an “illegitimate takeover”, wrote off the value of its Russian operations – estimated at nearly $1bn – and announced plans to defend its interests.
The group terminated licensing agreements with Baltika Breweries for the manufacturing and sale of Carlsberg products, including Holsten, Kronenbourg and Tuborg.
In response, Baltika Breweries took the matter to court, with a December 2023 ruling invalidating Carlsberg’s action.
