Russia: Scottish &Newcastle Russian brewery merger moves closer, shareholders approve Baltika deal

Scottish & Newcastle (S&N) has welcomed a key development in the planned merger of the four Russian breweries owned by its joint venture Baltic Beverage Holdings (BBH), The Publican posted August 28.

Shareholders in the Pikra, Vena and Yarpivo breweries have voted to approve the merger with the flagship Baltika brewery. The plan will now need approval by the Russian regulator, with the merger expected to be complete by the end of 2006.

S&N said the breweries "are working at full speed toward integration of production, sales, distribution and administration".

BBH is a joint venture between S&N and Carlsberg. It has 36 per cent of the Russian Federation market and owns the top two Russian beers, including market leader Baltika. The merger aims to strengthen Baltika’s position as Russia’s leading consumer goods brand.

30 August, 2006