Carlsberg's Strategic Exit: Brewing a Deal in Russia

Carlsberg is selling its Russian assets to Baltika Breweries employees after Russia seized control in 2023. Moscow approved the sale for 34 billion roubles. The deal involves Carlsberg's operations in Azerbaijan and Kazakhstan. Moscow demands discounts and taxes on foreign exits, with the market value impacting Russia's federal budget.

Danish brewing giant Carlsberg is navigating a crucial exit strategy from Russia by selling its assets to employees of Baltika Breweries. This move follows the seizure of its stake in July 2023, a situation exacerbated by Russia's tightened controls on foreign business operations amid geopolitical tensions.

In a deal valued at 34 billion roubles, Moscow has granted approval, and the transaction is set to close shortly. Carlsberg will gain shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan. The sale is seen as significantly discounted given Carlsberg's previous net asset valuation of 7.52 billion Danish crowns in Russia.

As part of its exit strategy, Carlsberg will transfer stakes in Azerbaijan operations in exchange for the Hoppy Union firm. This comes amidst high-profile asset disputes and allegations of intellectual property theft, with the 'exit tax' serving as a significant policy hurdle for foreign firms exiting Russia.

(With inputs from agencies.)