Just one year into his tenure, Carlsberg's new CEO Jacob Aarup-Andersen continues to push forward energetically. After announcing the mega-acquisition of British soft drink company Britvic last month and purchasing the remaining 40% shares in the joint venture Carlsberg Marston’s Limited (inside.beer, 8.7.2024), the next major deal is now set to take place in India and Nepal.
Carlsberg Group has announced today to take complete ownership of its businesses in these two countries. This agreement involves acquiring the remaining 33.33% shares of Carlsberg South Asia Pte. Ltd. (CSAPL) from CSAPL (Singapore) Holdings Pte. Ltd., thus finalizing Carlsberg's ownership of its Asian subsidiaries.
CSAPL currently oversees Carlsberg India Pte Ltd (CIPL), holding 100% of its shares, and has a substantial shareholding in Gorkha Brewery Private Limited (GBPL) in Nepal. As part of this transaction, CSAPL will also acquire an additional 9.94% stake in GBPL, enhancing Carlsberg’s control to 99.94% in Nepal.
The comprehensive transaction, valued at USD 744 million, is slated for completion in Q4 2024, pending several regulatory approvals, including specific conditions in Nepal. Notably, the Competition Commission of India has already approved the deal, expediting the process.
Jacob Aarup-Andersen, CEO of Carlsberg Group, stated, "This acquisition enables us to fully capitalize on the growth opportunities in the dynamic Indian beer market. Our Accelerate SAIL strategy prioritizes expansion in India, and this deal allows us to boost our investments in the region."
Carlsberg's path to full control was facilitated by an arbitration decision in their favor, following a dispute with the Khetan Group over business practices and financial governance in the joint venture (inside.beer, 17.8.2022). Carlsberg, operating in India since 2006, is the country's second-largest brewer with a 17% market share.
The consolidation will change the reporting of the Nepalese business from an associated company to a fully consolidated subsidiary.
