Carlsberg has announced a $744-million deal to acquire CSAPL, its partner in India, and Gorkha Brewery Pvt., its partner in Nepal. The agreement includes buying the remaining 33.33% shareholding in Carlsberg South Asia Pte. from CSAPL (Singapore) Holdings Pte.
CSAPL is the parent company of Carlsberg India Pte. and holds a significant stake in GBPL. As part of the transaction, CSAPL will also secure an additional 9.94% of GBPL's shares.
Upon completion of the deal, which is expected in the fourth quarter of this year, Carlsberg will own 100% of its Indian operations and 99.94% of its Nepalese business through CSAPL's stake in GBPL.
“Growing in India is a key priority in our Accelerate SAIL strategy, and we can now accelerate investments to capture the long-term growth opportunities in this exciting beer market," said Group CEO Jacob Aarup-Andersen.
The transaction includes Carlsberg's full acquisition of CSAPL and CSAPL's increased shareholding in GBPL. Of the $744 million total, $207 million will be retained by Carlsberg and released based on potential claims under the SPA, which may take 3-5 years. This includes certain conditions and the need for specific governmental approvals in Nepal.
The proposed transactions do not require any additional anti-trust approvals beyond the Competition Commission of India, which has already been obtained. The acquisition of the remaining shares in CSAPL will not affect the consolidation of CSAPL and CIPL in the group's accounts, as they have been fully consolidated historically.
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