Carlsberg To Acquire South Asian business in USD744 Million Agreement

Danish brewing giant Carlsberg has announced a strategic move to solidify its position in the South Asian market by acquiring the remaining 33.33 per cent stake in Carlsberg South Asia Pte. Ltd. (CSAPL) from its partner, CSAPL (Singapore) Holdings Pte. Ltd. The deal, valued at $744 million, is set to give Carlsberg full ownership of its operations in India and near-complete control of its business in Nepal, marking a significant milestone for the company’s expansion in the region.

CSAPL serves as the holding company for Carlsberg’s businesses in India, where it owns 100 per cent of operations, and in Nepal, where it holds a 90 per cent  stake through its shareholding in Gorkha Brewery Private Limited (GBPL). The remaining 33.33 per cent stake in CSAPL, which has been under the control of Singapore-based investor C P Khetan, has been a point of contention due to ongoing disputes. This acquisition will resolve those disputes, allowing Carlsberg to consolidate its control and streamline operations across these crucial markets.

In addition to the acquisition of the remaining stake in CSAPL, Carlsberg has agreed to purchase an additional 9.94 per cent of shares in Gorkha Brewery, bringing its total ownership in the Nepalese brewery to 99.94 per cent.. This move further underscores Carlsberg’s commitment to strengthening its footprint in Nepal, a market with significant growth potential for the company

The total purchase price of $744 million includes a retention of $207 million by Carlsberg, which will be released depending on potential claims under the sale and purchase agreement (SPA). This financial structuring allows Carlsberg to mitigate risks while ensuring a smooth transition to full ownership.