Danish beer maker Carlsberg announced an agreement to sell its stake in its Russian division on Tuesday, a day after President Vladimir Putin signed a decree ending state control of the business.
Carlsberg, like many other Western companies, announced in March 2022 that it would leave Russia, where it employed 8,400 people, following Moscow’s invasion of Ukraine.
But a year later, Putin placed Carlsberg’s local unit, Baltika Breweries, under state administration, and the Danish company’s chief executive, Jacob Aarup-Andersen, said its Russian business had been “stolen”.
After Putin lifted state control of the Baltics, Carlsberg said in a statement on Tuesday that it had an agreement to sell its shares in the local company for an undisclosed “cash consideration”.
Carlsberg will also receive Baltica’s stakes in Carlsberg Azerbaijan and Carlsberg Kazakhstan.
“The new controlling shareholder of Baltika Breweries will be a company equally owned by two long-term employees of Baltika, who currently hold leading positions in the company,” the statement said.
The transaction is expected to close “within the next few days.”
“Since announcing our intention to exit Russia in 2022, we have exhausted all options to find a way to achieve a full exit from Russia while protecting our employees, our assets and the value of the Carlsberg business,” Aarup-Andersen said in a statement.
He said the sale would resolve “numerous lawsuits” and intellectual property rights issues.
“Given the circumstances, we believe that this is the best possible outcome for our employees, shareholders and the continuation of business,” said the CEO.
