Carlsberg has taken a significant step to strengthen its position in Asia by acquiring the remaining 33.33% stake in its Indian and Nepalese operations.
The brewer has reached an agreement to purchase the shares from its partner, CSAPL (Singapore) Holdings, for a total of US$744m.
The deal will give Carlsberg complete control over its Indian subsidiary, Carlsberg India, and a 99.94% stake in the Nepalese business, Gorkha Brewery. Carlsberg expects the transaction to be finalised in the fourth quarter of this year, subject to regulatory approval.
By gaining full ownership, the Copenhagen-headquartered company aims to accelerate investments and capitalise on growth opportunities in India’s beer market, which research firm EMR valued last year at INR483.1bn (US$5.76bn), forecasting CAGR growth of 9.9% over the next eight years. Carlsberg believes this move will enhance its ability to compete effectively and expand market share in the country.
“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,” said CEO Jacob Aarup-Andersen. “Growing in India is a key priority in our … strategy, and we can now accelerate investments to capture the long-term growth opportunities in this exciting beer market.”
Two years ago, Carlsberg won an arbitration case against the Nepal-based Khetan Group, the controller of CSAPL. Khetan had been seeking financial relief related to a dispute that was first revealed in 2019. The tribunal awarded Carlsberg the right to buy Khetan’s shares in the joint venture.
Underlining Carlsberg’s expansion plans, the company received the green light last month to acquire UK-based soft drinks group Britvic in a deal valued at GBP3.3bn (US$4.23bn).
