Moscow gains control of Danone’s Russian subsidiary and Carlsberg’s stake in a brewer.
MOSCOW Takes Control of Danone’s Russian Subsidiary and Carlsberg’s Stake in Local Brewer
The Russian state has made a bold move by taking control of French yoghurt maker Danone’s Russian subsidiary and beer company Carlsberg’s stake in a local brewer. This decision was announced through a decree signed by President Vladimir Putin on Sunday.
The decree states that the foreign-owned stakes in Danone Russia and Baltika Breweries will be placed under the “temporary management” of government property agency Rosimushchestvo.
This move follows the Russian state’s previous takeover of Germany’s Uniper and Finland’s Fortum in April. The Kremlin had warned that it could seize more Western assets temporarily in response to foreign actions against Russian companies abroad, particularly after Russia’s involvement in Ukraine.
Carlsberg, in a statement, expressed uncertainty about the consequences of the presidential decree on Baltika Breweries, as it had not received any official information from the Russian authorities. Carlsberg had previously signed an agreement to sell its Russian business, but now the prospects for full disposal are highly uncertain.
Danone, on the other hand, stated that it is investigating the issue and assured that the Kremlin’s decision will not impact its financial guidance for 2023. Last October, the French company had announced its intention to find a buyer for its dairy food business in Russia, which could result in a write-off of up to 1 billion euros ($1.12 billion).
($1 = 1.1227 euros)
(Reporting by Caleb Davis and Darya Korsunskaya; Additional reporting by Louise Breusch Rasmussen in Copenhagen and Lavanya Sushil Ahire in Bengaluru; Editing by Andrew Osborn and Emelia Sithole-Matarise)
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