Carlsberg has taken full control of its business in India and Nepal, agreeing to buy out its Singaporean partner Khetan Group for a total of USD 744 million, the the Danish brewing giant has confirmed.
Carlsberg announced on August 2 its intentions to buy a 33.33 percent stake in Carlsberg South Asia from Singaporean partner CSAPL Holdings, along with stakes in underlying companies, with the deal expected to be completed in the fourth quarter of this year.
After the sale, Carlsberg will own 100 percent of the business in India and 99.94 percent of the business in Nepal, according to a company press release.
Carlsberg and Khetan have been embroiled in a long-standing dispute that emerged in 2019, when Carlsberg India board members from Khetan appealed to the Indian government to investigate what they said was Carlsberg’s flouting of laws on trade discounts, advertisement and sales promotion, according to Reuters.
Carlsberg’s CEO Jacob Aarup-Andersen said he was pleased to have reached an “amicable agreement” with CSAPL, and that the buy-out would open new opportunities in India.
“We can now accelerate investments to capture the long-term growth opportunities in this exciting market,” he said.
In a new interview with Finans on Thursday, Aarup-Andersen said that Khetan Group had “held back on investments”, and looked ahead to taking Carlsberg “beyond the Steppes”.
The Danish company currently controls around 17 percent of India’s drinks market.
