SWEDEN: Government mulls Vin & Sprit break-up - report

By just-drinks.com editorial team | 4 July 2007

The Swedish government has not ruled out splitting up Vin & Sprit prior to a sell-off, according to local reports.

Swedish business newspaper Dagens Industri reported earlier this week that the Government may break up the state-owned company, ahead of privatising it in the coming months. The proposal to sell V&S was okayed by the Swedish parliament last month.

"There are different scenarios," Jonas Iversen, head of the unit for state ownership, was cited as saying by the paper. "Vin & Sprit on the one hand has a very internationally strong business, spearheaded by Absolut and other international brands, but also a Nordic segment with wine and distilled beverages. It is reasonable to review this in a potential transaction."

Iversen also noted that the current economic climate makes the timing of the sale a plus. "It has often proven that this kind of (strong economic) situation is a good market for those selling companies," he said.

Interest in V&S, which also owns the Absolut vodka brand, is coming from "industrial players, private equity firms and various representatives both from Sweden and from abroad", Iversen noted.

Sectors: Spirits, Wine

Companies: V&S, Absolut