BBH expands with acquisition in Russia
Baltic Beverages Holding (BBH), owned by Pripps Ringnes and the finish brewery Hartwall, has signed a letter of intent concerning the acquisition of a majority holding in the Pikra brewery, which is located in Krasnoyarsk in Siberia. After a directed share issue, BBH will own 50,1 per cent of the shares in Pikra. The rest of the shares in the brewery are owned by local shareholders. The anti-monopoly authorities are expected to grant permission for the acquisition by the middle of December 1999.
About 15 million consumers live in the Krasnoyarsk economic area in Siberia. Pikra is the areas leading brewery. The peak annual production capacity is 70 million litres. Modernisation of the brewery will begin immediately with the aim of raising beer quality to the standard in the west and achieving a sizeable increase in production capacity.
After this acquisition, BBH will have a total of twelve breweries, four of which are in the Baltic countries, six in Russia and two in Ukraine. BBH is also the joint owner of eight malt houses.