ASIA – Danish brewing giant Carlsberg is set to bolster its presence in the South Asian market by acquiring the remaining 33.33 percent stake in Carlsberg South Asia Pte. Ltd. (CSAPL) from its partner, CSAPL (Singapore) Holdings Pte. Ltd.
The deal, valued at US$744 million, will grant Carlsberg full ownership of its operations in India and near-complete control of its business in Nepal, marking a major milestone in the company’s expansion in the region.
CSAPL serves as the holding company for Carlsberg’s businesses in India, where it owns 100 percent of operations, and in Nepal, where it holds a 90 percent stake through its shareholding in Gorkha Brewery Private Limited (GBPL).
As part of this transaction, CSAPL has also entered into an agreement to acquire a further 9.94 percent of the shares in GBPL.
Following the completion of these transactions, Carlsberg will own 100 percent of the existing business in India and, through CSAPL’s shareholding in GBPL, 99.94 percent of the existing business in Nepal.
“The acquisition of the remaining shareholding in CSAPL will have no impact on the consolidation of CSAPL and CIPL in the Group accounts, having been fully consolidated historically,” read a company statement.
The total purchase price for the proposed transaction amounts to US$744 million, subject to adjustments pursuant to the transaction documents.
Of the transaction amount, US$207 million will be retained by Carlsberg and will be released dependent on potential claims under the sale and purchase agreement (SPA).
The proposed transactions are expected to be completed in Q4 2024, subject to the satisfaction of certain conditions to completion.
Carlsberg CEO Jacob Aarup-Andersen stated, “We’re pleased that we’ve been able to reach an amicable agreement with our partner and achieve full control of two important Asian businesses. Growing in India is a key priority in our Accelerate SAIL strategy, and we can now accelerate investments to capture the long-term growth opportunities in this exciting beer market.”
The acquisition received approval from the Competition Commission of India (CCI) last September. However, finalizing the agreement was paused when the Copenhagen-based brewer asked for the deal to be moved into an arbitration process after objecting to Khetan’s US$744 million valuation for its 33 percent share.
Both companies have been involved in a commercial dispute since 2019, with Khetan accusing Carlsberg of not complying with local trade laws. Carlsberg denied the claims, leading Khetan to refer the case to a Singapore arbitration tribunal.
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