Denmark: The Danish brewer Carlsberg Breweries AS has said its Carlsberg Breweries unit is being sued for an estimated $1.75.2 billion by Chang Beverages Pte Ltd over its decision to end a joint venture with the Thai brewery, AFX posted on May 3. Carlsberg said Chang Beverages had dropped its prior demand that Carlsberg Asia, now a fully-owned Carlsberg unit, continue as a joint venture, but is seeking compensation instead.

Carlsberg had planned to use Carlsberg Asia to enter the Asian beer market, but cancelled plans for the joint venture last autumn after deciding Chang Beverages' input was not enough.

In a statement on May 3, Carlsberg said it still holds a strong case against Chang Beverages, and the claim for damages is unfounded. The estimated amount of damages lacks any factual basis, and therefore Carlsberg has made no financial provisions, it said.

On 27 August 2003 Carlsberg terminated its licence agreement with Carlsberg Brewery (Thailand) Company Limited (CBTL) accusing CBTL of failing to perform its contractual obligations, including the payment of royalties due under the licence. CBTL is owned by Carlsberg's former partner in Asia, Chang Beverages.

04 May, 2004