The Danish brewer will pay US$744 million to take nearly 100% ownership of its South Asian operations
Danish brewing giant Carlsberg has announced a significant strategic move to consolidate its operations in India and Nepal by acquiring full control over its regional businesses.
The company has agreed to purchase a 33.33% stake in Carlsberg South Asia Pte Ltd (CSAPL) from its partner, CSAPL (Singapore) Holdings Pte Ltd; along with other related stakes, for a total consideration of US$744 million. This transaction is expected to conclude in the fourth quarter of 2024, pending regulatory approvals.
Upon completion, Carlsberg will hold 100% ownership of its business in India and nearly complete control over its operations in Nepal, with a 99.94% stake in Gorkha Brewery Private Limited (GBPL), which operates in the Nepalese market.
This marks a critical juncture for Carlsberg as it strengthens its presence in the South Asian beer market, a region which is forecast to have significant growth potential.
The acquisition is a culmination of Carlsberg’s long-term strategy to expand its footprint in Asia, particularly in India, where the company already currently controls approximately 17% of the beer market.
The opportunity to fully acquire CSAPL and GBPL comes after Carlsberg’s successful arbitration against its Nepalese partner, Khetan Group, in 2022, which granted Carlsberg the right to buy out Khetan’s shares following a dispute that began in 2019.
The deal is structured with US$207 million of the US$744 million purchase price to be retained by Carlsberg and released within the next three to five years, contingent on certain requirements under the Sale and Purchase Agreement being met.
The company has already secured necessary approvals from the Competition Commission of India, and the deal is primarily awaiting additional governmental clearances in Nepal. Post-acquisition, the Nepalese business will transition from being an associated company to a fully consolidated entity.
