E-Malt.com News article: 1520

Chang Beverages Pte Ltd, a Singapore-incorporated firm associated with Thai liquor tycoon Charoen Sirivadhanabhakdi, is pursuing arbitration in London to settle a dispute with the Danish brewer Carlsberg Breweries A/S, Bangkokpost reported. Chang made the announcement on September 2, 2003 in a statement under the headline: “Carlsberg's high-handed behaviour and bullying tactics rejected by the joint-venture partner (Chang Beverages).”

Chang said the business partnership dated back to the 1990s with an agreement to create a joint-venture vehicle, Carlsberg Asia Pte Ltd, with the aim of expanding joint operations in Asia. ”But after CBAS (Carlsberg Breweries A/S) underwent various management changes in 2001, CBAS attempted to take a number of steps designed to bring an end to the joint venture, the first of which was in March 2003, when several Chang Beverages-nominated directors were removed by CBAS,'' the statement said.

In August, CBAS said it was terminating the joint venture. On each occasion, CBAS acted unilaterally and without prior consultation or notice, Chang said. The company said it gave Carlsberg ”several opportunities to reinstate Chang Beverages directors and to cure various breaches of the contract''.

Lee Tak Meng, a director of Chang Beverages, said the company did not agree that Carlsberg had any right or valid grounds to terminate the contract. ”We consider actions by CBAS's newly installed management to be extremely high-handed and arrogant. Perhaps Carlsberg believe they can go it alone in Asia and kick us out when they feel like it, but they are sadly mistaken,'' he said. ”Their bullying tactics can only go so far and we are determined to take our case all the way to arbitration and show that they have not been acting in good faith.''


04 September, 2003