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Russia lands shares for Danone and Carlsberg
Variety and Tech
2023-07-17 | 03:09
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Russia lands shares for Danone and Carlsberg
Russia has temporarily taken control of shares belonging to French company Danone and Danish company Carlsberg, according to a decree published on Sunday.
The decree, signed by President Vladimir Putin, stated that the Russian state would temporarily manage the shares belonging to Danone Russia and Baltika, owned by Carlsberg.
Danone announced in a statement that they are considering the matter and "preparing to take all necessary measures to protect its rights as a shareholder in Danone Russia and ensure the continued operations of the company for the benefit of all stakeholders."
Baltika is a leading beer company in Russia, holding about 30% of the market share.
Carlsberg had announced in March of last year that it would sell all its activities in Russia, where it employs 8,400 people.
In June of last year, the company stated that it had found a buyer for these activities, without naming the buyer, more than a year after announcing its withdrawal from the Russian market due to the conflict in Ukraine.
Carlsberg stated in a statement, "After the presidential decree was issued, the prospects for this sales process have become highly uncertain."
The statement added, "The Carlsberg Group has not received any official information from the Russian authorities regarding the presidential decree or the consequences for the Baltika beer company."
As for Danone, it is one of the last global companies to remain in Russia since Moscow launched its military operation in Ukraine in early 2022.
Danone announced in October of last year that it planned to withdraw from most of its businesses in Russia.
The company stated that it would divest its operations in dairy and plant-based products and only retain its infant nutrition division.
A significant number of Western companies have withdrawn from Russia since February 24th, 2022, when the Russian military launched its operation in Ukraine.
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