Carlsberg acquires full ownership of South Asia business

Danish brewing giant Carlsberg has completed a deal to acquire the remaining shares of its joint venture partner in Carlsberg South Asia (CSAPL).

The Grimbergen brand owner will purchase the remaining 33.33% shareholding in CSAPL for $744m, the original offer proposed to the group last year.

In February 2023, Carlsberg’s India-based partner Khetan Group gave notice of its plan to sell its stake in CSAPL. Khetan, through its entity CSAPL Holdings, had issued a valuation of $744m on its 33% share of the company.

Following completion of the transaction, Carlsberg will own 100% of CSAPL.

CSAPL is the holding company for the 1664 brewer‘s Indian operations and the Gorkha Brewery business in Nepal, in which CSAPL owns a 90% stake.

As part of the agreement, CSAPL has also signed an agreement to increase its shareholding in Gorkha Brewery to 99.94%.

Completion of the acquisition is expected by the fourth quarter of 2024, subject to conditions which include being granted “certain government approvals” for the increased shares in the Nepal business.

Carlsberg was already given the green light for the CSAPL acquisition by the Competition Commission of India (CCI) last September.

Finalising the agreement however was paused when the Copenhagen-based brewer asked for the deal to be moved into an arbitration process after it objected Khetan’s $744m valuation for its 33% share.

Both companies had been involved in a commercial dispute since 2019, with Khetan accusing Carlsberg of not complying with local trade laws. The Somersby apple cider owner denied the claims and Khetan referred the case to a Singapore arbitration tribunal.

In 2022, Carlsberg was said to have won the lengthy court battle. In an interview with Just Drinks at the time, the group’s then CEO Cees ’t Hart indicated that it would be making moves to snap up Khetan’s stake in the near future.

Just Drinks