CEDC to buy $157 million stake in Russian Alcohol

Spirits producer CEDC will pay $157 million for a 40% stake in Russian Alcohol, which will ensure the company a leader position on the Russian market. "We intend to become a leader on the Russian market of brand wine and spirit drinks. Investment in the Russian Alcohol group is another step to carrying out our objective," said William Carey, president of CEDC, which is listed in New York and Warsaw.

In March 2008 the firm also informed about the plan to take over an 85% stake in Copecresto Enterprises, which owns Russian vodka Parliament.

CEDC will pay $180 million in cash and it will also transfer 2.3 million of own shares. The firm also plans to purchase a 75% stake in local alcohol distributor Whitehall group.

However, Belvedere group is also planning to head east. The group owns the Sobieski brand but purchased a Ukrainian vodka and liqueurs producer in February and by the end of June will take over a production facility in Russia.

Source: Rzeczpospolita and Parkiet 24-25 May