Carlsberg to advance its stake in India, Nepal units

The Danish brewing giant, Carlsberg Group has announced plans to increase its ownership in its Indian and Nepalese subsidiaries.The brewer is set to solidify its foothold in South Asia with a significant acquisition valued at 744 million USD, in its subsidiaries in India and Nepal .

Through its holding company Carlsberg South Asia Pte Ltd (CSAPL), Carlsberg 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, bringing its total ownership to 99.94 percent.

The acquisition, which is expected to close in Q4 2024, is contingent upon certain conditions, including securing 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 USD transaction value, 207 million USD will be retained by Carlsberg, with its release contingent on potential claims under the Share Purchase Agreement (SPA) over the next 3-5 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.

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