Carlsberg has agreed to sell its 50% non-controlling stake in Lhasa Brewery, marking its exit from a long-troubled joint venture in Tibet after more than two decades. The stake will be acquired by local partner Tibet Development for CNY 292 million (USD 42 million), according to filings by the Chinese company. In addition, Carlsberg will receive a final dividend payment of CNY 60 million (USD 8 million).
The transaction values the entire equity of the joint venture at CNY 1.196 billion (USD 172 million), although the agreed consideration for the 50% stake is significantly lower than a proportional valuation. Tibet Development said full ownership will allow it to strengthen asset management and consolidate its market position in the region. The deal is subject to corporate and regulatory approvals in China.
Carlsberg confirmed that final agreements have been signed, describing the holding as a non-controlling equity stake with limited strategic relevance. The brewer has been locked in disputes with its partner for years, including lawsuits in Chinese courts that disrupted operations and eroded financial performance. In its 2021 annual report, Carlsberg disclosed that management conflicts led to the loss of significant influence over the brewery, prompting a reclassification of the investment and an impairment charge of DKK 244 million (USD 39 million). A further write-down of DKK 66 million followed in 2024.
An earlier attempt by Carlsberg to sell its stake to another Chinese buyer in 2023 failed after opposition from Tibet Development and subsequent court rulings in favor of the local partner (inside.beer, 1.6.2023). As part of the latest agreement, Tibet Development will also pay a settlement of CNY 35 million (USD 5 million) related to that aborted transaction.
Despite the withdrawal from Tibet, Carlsberg stressed that the move does not signal a retreat from China. The country remains the group’s largest single market, accounting for DKK 12.88 billion in revenue in 2024, or about 17% of total group sales. The brewer continues to focus on premiumisation and urban markets in China, while simplifying its footprint by exiting smaller, structurally complex operations with limited control.
