The Danish brewer, Carlsberg Breweries A/S, has announced that it is dropping representatives from Chang Beverages from the board of its Asian joint venture Carlsberg Asia Pte Ltd. The brewer said that the 50/50 joint venture set up between the two companies last year had not developed as it had expected.
The final transfer of activities/companies to Carlsberg Asia was expected to be completed during the first half of 2003. But Carlsberg said that Chang Beverages assets have not been transferred as was originally planned.
“The joint venture in Asia and the cooperation between the parties have not developed according to expectations, amongst other things because the activities to be contributed by Chang Beverages
Pte. Ltd. constitute a smaller and different business than originally presupposed,” Carlsberg said in a statement. “This applies for instance to the basis and potential of the Thai sales and distribution company. The Chang Beverages assets have thus not been transferred to Carlsberg Asia.”
Carlsberg said that “in order to protect its interests”, it had replaced Chang Beverages’ board members in Carlsberg Asia with Carlsberg Breweries representatives.
Carlsberg did not say that the joint venture was being discountinued but that discussions to seek a solution were ongoing. It added that no further information would be given until those talks had been concluded.
Whatever the outcome of those negotiations, Carlsberg said it would not have a “significant effect” on its operating profit for 2003.
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