1Anno·

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 (+0,09%) and $CARL A (+0%) in Russia continue to develop? I checked stock prices earlier and both stocks dropped after the presidential decree. 📉

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14 Commenti

immagine del profilo
is nothing other than expropriation.
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immagine del profilo
According to international law, of course, not okay, but what happens if someone sues Russia? Nothing, there are enough examples in history: e.g. the USA expropriated the US business of Merck during the 1st World War. That's why today there are two different Merck shares, the US Merck used to be only a subsidiary. Another example Coca Cola: Coca Cola Germany was expropriated by the Natis. The then German Coca Cola then invented Fanta, by the way, which was then expropriated again by the USA after World War 2 😂.
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immagine del profilo
Carlsberg tastes good 👍
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immagine del profilo
Depending on how much power you have, you can take anything.
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immagine del profilo
The whole thing is the beginning of a new phase of economic warfare between the West and Russia. The EU has already announced that it will use Russian capital stored abroad for reparations in the UKR. In return, RUS expropriates Western companies in RUS. The whole thing will have devastating effects on the Russian economy, especially because no major Western company will invest in RUS for the next 50 years.
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immagine del profilo
But it happens more often than you think: Merck USA was nationalized by the Americans during WW2. Cuba also nationalized all US companies after the revolution. Many countries also like Iran, Egypt.
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immagine del profilo
In countries that don't have a functioning democracy, this happens from time to time. It won't hurt the two companies for long.
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immagine del profilo
This shows how bad Russia's finances are.
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