Carlsberg has closed some of its Russian breweries

Carlsberg has closed some of its Russian breweries

Carlsberg has declined to comment on a report it had held talks over selling its UK unit to C&C Group.

The Financial Times reported yesterday the two companies met as recently as last month about a deal over Carlsberg UK. The talks ended at the end of last month, the FT said, citing sources familiar with the matter.

It is unclear if the talks will be restarted, the sources reportedly said.

A spokesperson for Carlsberg said the company is not commenting on the report. C&C Group also declined to comment.

Carlsberg has been hit by declining beer consumption in Russia, its core market, and has closed breweries in the country. The brewer posted a 12% slide in operating profits last month and in June, CEO Jørgen Buhl Rasmussen was replaced by Cees ‘t Hart. Buhl Rasmussen retired at the same time as the company announced a slide in full-year profits.

According to the FT, Carlsberg has a 14% market share in the UK and operates its own distribution network.

C&C Group has found growth difficult in its Scottish and Irish markets and has been hit by impairment charges on its North American acquisition, Vermont Hard Cider Co.

In January, it dropped out of the bidding for UK pub operator Spirit Pub Co, leaving the path clear for Greene King.