Scottish & Newcastle believes that its arbitration case against Carlsberg over their Russian joint venture Baltic Beverages Holdings will be successful.

In October, S&N claimed Carlsberg had breached the terms of the joint venture when it joined forces with Heineken to make a joint bid for S&N, and last week revealed formal arbitration proceedings had started and a decision was expected by 3 July.

Carlsberg has misused confidential information, breached its duty of loyalty, circumvented the 'shotgun' and its action would damage the joint venture, S&N said in a statement detailing its claim. It estimated synergies of £100m a year if it had full control of BBH.

“S&N is confident that its claim will be successful and that it will have the right to acquire Carlsberg's 50% in BBH at fair market value,” added CEO John Dunsmore.

Topics