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. Last Updated: 07/27/2016

Brewer to Consolidate Assets

ST. PETERSBURG -- The Russian beer venture of Denmark's Carlsberg and Britain's Scottish & Newcastle plans to start consolidating Russian assets with its Krasnoyarsk brewer Pikra, a spokesman said Monday.

Alexei Kedrin said the consolidation of Baltic Beverages Holding's 70.32 percent stake in Pikra, worth $67.5 million, was on the agenda of a July 7 shareholders meeting.

BBH, owned 50-50 by Scottish & Newcastle and Carlsberg, has said it will consolidate its assets in Russia through its key holding, Baltika, Russia's biggest brewer. BBH owns 75.4 percent of the shares in Baltika.

If approved, the transaction will give Baltika 86.7 percent of Pikra, up from 16.38 percent now.

Apart from Baltika and Pikra, BBH also owns controlling stakes in the Yarpivo and Vena breweries, and industry analysts have said the holding company may want to consolidate the assets by bringing the plants under one share.

Analysts also say some of BBH's brands overlap, as they often compete in the same price segments.

Baltika's main premium brand, Baltika No. 7, is very close to Vena's premium brand, Nevskoye, while Baltika's core brand, Baltika No. 3, is similar to the Yarpivo brand, they say.