The pressure is rising on Danish companies to leave Russia after Carlsberg’s departure

The pressure is rising on all with Russian interests after Carlsberg’s decision to withdraw completely from the country in the wake of the invasion and put all its assets up for sale.

Most analysts agree that Carlsberg will be lucky to get back even a fraction of the value of $ 20 billion of its assets in Russia, and other companies will be nervous that an exit could leave big gaps in their balance sheets.

But it can be a small compared to the cost of staying, where the public is now increasingly questioning their decision to stay. DR reports that there are 19 major Danish companies with notable interests in Russia.

Sydbank analyst Per Fogh does not hold back about Carlsberg’s chances of a lucrative sale. “I do not really expect them to get anything special. I almost expect them to write off the entire value of it, ”he tells DR.

Putin’s regime may be left with significant remnants
Anders Schelde, investment director at the fund Akademikerpension, told DR that Carlsberg’s exit (especially the same day as the Dutch rival Heineken), which was confirmed afternoon via a press release, will undoubtedly put massive pressure on other companies to follow suit. .

“I would say that it increases the pressure on all Danish companies with activities in Russia. But each situation is unique, ”he said. “ has to be very aware that it is also about withdrawing from Russia in a way that leaves as little money as possible on the table for the Putin regime.”

Fogh agrees. “So now that they are taking the consequence and pulling the plug, there is no doubt that greater pressure will be put on the other Danish companies that still have activity in Russia,” he said.

With 8,400 employees at eight breweries in the country, it is estimated that Carlsberg has invested DKK 10 billion in the country in recent years. The most valuable asset is a local brand, Baltika, which accounts for 90 percent of its Russian interests.

In 2021, Carlsberg had a turnover of DKK 6.5 billion for its activities in Russia, which gave an operating profit of DKK 682 million.

Rockwool and Ecco stay so far
Two large companies, Rockwool and Ecco, have so far resisted the pressure to close the store in Russia.

Rockwool claims the closure will be tantamount to handing over funds to the Russian state’s war chest.

“We condemn the war, and the decision to keep our factories in Russia has not been easy. But if we close our , the Russian state will take over. And the business will continue to run, just with new owners. And thus we will give the Russian state a billion kroner gift in the form of good business, ”it is justified to DR.

Likewise, Ecco remains. Conversely, as a company, we have spent considering and analyzing what we need. After lengthy discussions, this has led us to continue operating in Russia at present. We will not let our more than 1,800 employees and their families down, ”Ecco CEO Panos Mytaros reasoned to Finans on 23 March.

Source: The Nordic Page




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