Yesterday it became known that Russia is taking control of Danone's and Carlsberg's shares in their Russian subsidiaries by presidential decree. This is despite the fact that both companies had announced that they would leave the Russian market because of the Ukraine war. The decree names the Russian state as the temporary administrator of the shares of Danone Russia and Carlsberg's Baltika subsidiary.
Danone said it was reviewing the situation and would take measures to protect its rights as a shareholder in Danone Russia and its business operations. The company had already announced that it would end most of its operations in Russia, retaining only its infant formula business. Danone stresses that Russia's decision will have no impact on Danone's financial targets for 2023. Now that's something to look forward to!
Carlsberg is also affected by the measure. Its Baltika subsidiary is a leading brewer in Russia. Carlsberg had already announced that it would cease its operations in Russia and find a buyer. The presidential decree now probably brings uncertainty into the sales process.
I didn't know that a country could take over shares in foreign companies by decree. Did you know that? How do you think the situation will develop for $BN (+0,65 %) and $CARL A (+0,22 %) in Russia continue to develop? I checked stock prices earlier and both stocks dropped after the presidential decree. 📉
