CABGY Carlsburg AS (PK)

By Dominic Chopping

Carlsberg said late Sunday that the Russian government has taken control of its Russian Baltika Breweries business.

The company said that a presidential decree has transferred Baltika Breweries to the temporary management of the Russian Federal Agency for State Property Management, adding that it will now assess the legal and operational consequences and take all necessary actions in response.

The Danish brewer hasn't received any official information from Russian authorities regarding the presidential decree or the consequences for Baltika Breweries, it said.

"The Carlsberg Group has been operating in accordance with local rules and regulations in Russia and finds this development unexpected," it said in a statement.

Carlsberg announced at the start of 2022 that it would seek a full disposal of its business in Russia and had signed an agreement last month to sell the business, subject to regulatory approvals and conditions.

"Following the presidential decree, the prospects for this sales process are now highly uncertain."

The decree also includes French yoghurt maker Danone's Russian subsidiary.

Earlier this year the Russian subsidiaries of Germany's Uniper and Finland's Fortum were also taken under state control in retaliation to the flight of Western companies from Russia in the wake of the country's invasion of Ukraine.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 17, 2023 02:32 ET (06:32 GMT)

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