Danish brewing giant Carlsberg has announced plans to acquire the remaining 33.33% stake in Carlsberg South Asia Pte. Ltd. (CSAPL) from its partner, CSAPL (Singapore) Holdings Pte. Ltd., in a deal valued at $744 million. This move will give Carlsberg full control over its businesses in India and Nepal.
CSAPL is the holding company for Carlsberg’s operations in India (100%) and Nepal (90%), through its stake in Gorkha Brewery Private Limited (GBPL). The shares under CSAPL Holdings are controlled by Singapore resident C P Khetan, with whom Carlsberg had been involved in disputes.
Carlsberg to Fully Control Indian and Nepalese Operations with $744 Million Acquisition
Carlsberg confirmed the agreement in a statement, indicating that it will also acquire an additional 9.94% of shares in GBPL as part of the transaction. Once completed, Carlsberg will own 100% of its Indian operations and 99.94% of its Nepalese business through CSAPL’s shareholding in GBPL.
The total purchase price of $744 million is subject to adjustments outlined in the transaction documents. Carlsberg will retain $207 million of this amount, which will be released based on potential claims under the Share Purchase Agreement (SPA) after a period of three to five years.
Jacob Aarup-Andersen, Carlsberg Group CEO, expressed satisfaction with the agreement, stating, “We are pleased that we’ve been able to reach an amicable agreement with our partner and achieve full control of two important Asian businesses. Growing in India is a key priority in our Accelerate SAIL strategy, and we can now accelerate investments to capture the long-term growth opportunities in this exciting beer market.”
Carlsberg, which also owns the Tuborg brand, is the third-largest brewer in India, having commenced operations in the country in 2007.
The proposed transactions are expected to be completed in Q4 2024, pending the fulfillment of certain conditions, including governmental approvals in Nepal. The acquisition will not impact the consolidation of CSAPL and Carlsberg India Pvt. Ltd. (CIPL) in Carlsberg’s Group accounts, as they have been fully consolidated historically. However, the Nepalese business, currently accounted for as an associated company, will be fully consolidated following the acquisition of the additional shares in GBPL.
