Carlsberg Group to increase ownership in Indian and Nepalese subsidiaries

The Danish brewing giant, Carlsberg Group, has announced plans to solidify its foothold in South Asia by increasing ownership in its Indian and Nepalese subsidiaries. The significant acquisition is valued at $744 million and is set to enhance Carlsberg’s control and growth prospects in these key markets.

Carlsberg South Asia Pte Ltd (CSAPL), the holding company, currently owns 100 percent of Carlsberg India Pte Ltd (CIPL) and a 90 percent stake in Gorkha Brewery Private Limited (GBPL) in Nepal. As part of the newly announced deal, CSAPL will acquire an additional 9.94 percent stake in GBPL, raising its total ownership to 99.94 percent.

The acquisition is expected to close in the fourth quarter of 2024, pending certain conditions, including necessary governmental approvals in Nepal. The deal has already received approval from the Competition Commission of India and does not require further antitrust clearance.

Of the total $744 million transaction value, $207 million will be retained by Carlsberg, with its release contingent on potential claims under the Share Purchase Agreement (SPA) over the next three to five years. This transaction will have minimal impact on the financial consolidation of Carlsberg’s Indian operations, as CSAPL and CIPL are already fully consolidated in the Group’s accounts. However, the Nepalese business, currently accounted for as an associated company, will be fully consolidated into Carlsberg’s financial statements following the acquisition of the additional shares.

Carlsberg aims to enhance its operational control and drive growth in these springing up markets by securing nearly complete ownership of its operations in both India and Nepal. This strategic investment underscores the company’s commitment to strengthening its presence in the rapidly growing South Asian beer market.