Carlsberg Wins Arbitration Case Brought by Venture Capital Partner in India

0

Cans of Carlsberg beer are seen at a pub in Mumbai, India October 20, 2018. REUTERS/Danish Siddiqui

Join now for FREE unlimited access to Reuters.com

Register

COPENHAGEN/NEW DELHI, Aug 17 (Reuters) – Carlsberg (CARLb.CO) said on Wednesday it had won an arbitration case filed by its joint venture partner in India, following a dispute over the Danish brewer’s business practices in the country.

The Copenhagen-based brewer has for years been locked in a business dispute with its partner, Nepalese group Khetan, amid an internal investigation into the brewer’s local practices that has sparked a battle within the board and the concerns of his listener. (https://reut.rs/3pqiXOy)

Khetan Group, which owns 33.3% of the shares in the holding company of Carlsberg’s India and Nepal operations, had referred disagreements over corporate governance standards to a Singapore arbitration tribunal.

Join now for FREE unlimited access to Reuters.com

Register

In a May 4 ruling, Carlsberg said an arbitration panel had denied its partner “the relief it sought based on the various governance and pact breach allegations.” of shareholders”.

The arbitration order is not public.

“Carlsberg considers its position fully justified by the liability award and is very pleased with this outcome,” he said in his statement on Wednesday. Read more

A representative for CP Khetan, which manages the Carlsberg India JV partnership, said in a statement that the arbitration award was “partial” and arbitration is ongoing, and would provide a “detailed response to Carlsberg’s allegations in due time”.

Carlsberg is one of India’s largest beer companies, with a market share of around 17%.

Carlsberg previously told Reuters in a statement in July that the arbitration award provided the company “new options to end the dispute and the partnership and secure the future operational freedom of our businesses in India and Nepal.”

The two sides have been embroiled in a row since 2019 over the way Carlsberg India conducted internal investigations into its business practices.

Carlberg’s local auditor had twice declined to comment on its finances in recent years, citing differing opinions from three members of Khetan’s board of directors who repeatedly alleged regulatory lapses. Carlsberg has denied any wrongdoing. (https://reut.rs/3SWpIVN)

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Jacob Gronholt-Pedersen in Copenhagen and Aditya Kalra in New Delhi; Editing by Bernadette Baum

Our standards: The Thomson Reuters Trust Principles.

Share.

About Author

Comments are closed.