The Danish brewer announced its intent to sell the business in March last year, responding to the war in Ukraine. It has now announced that it has signed an agreement to sell the business to an undisclosed buyer.
“The separation of the Russian business from the rest of the Carlsberg Group has been very complicated, including around 150 work streams across business functions and more than DKK 150m investments in brewery equipment and IT infrastructure in markets outside Russia,” said a statement from the company on Friday, June 23.
“The transaction is subject to a comprehensive regulatory approval process in Russia. This includes the filing of applications with the Russian Government Commission to obtain its approvals, which is mandatory under Russian law.
“In addition, the transaction is subject to several customary conditions, including regulatory approval and fulfillment of certain conditions in a number of jurisdictions.
“Consequently, the timing of the final completion of the transaction remains uncertain.”
In 2021, Carlsberg’s business in Russia reported revenue and operating profit of DKK 6.5bn and DKK 682m respectively. The business consists of eight breweries and a 27% market share in the country, thanks to brands such as Baltika, 1664 Blanc, Somersby and Tuborg.
CEO Cees ’t Hart said: “The signing of an agreement to sell the Russian business is a very important milestone in the highly complex separation and selling process. While it has been an extensive process, it has been important for us to reach the best possible solution for all stakeholders, including our more than 8,000 employees in Russia. We now look forward to receiving the necessary regulatory approvals.”
Last week, Carlsberg confirmed investments of 1.5 billion hryvnias ( €40m / $44m) for Ukraine in 2023, with a new production line at its Kyiv brewery which will increase the production capacity of canned products by 80%.