Ten years ago, local Slovenian brewery Union did everything it could to keep itself from being bought by Belgium-based beer giant Interbrew. It finally gifted itself to Lasko, its larger domestic rival to create a monopoly that has an 80% control of the country's beer market, Reuters reported.
However, a decade later, Lasko has accumulated debt amounting to millions of euros and is one of the dozens of firms that is controlled directly or indirectly by the state that could be sold in a fire sale in an attempt to put Slovenia's finances on a steady footing.
Lasko's former head of sales Dusan Siljan who is set to retire this week told Reuters about the company's merger with Union. "We reckoned we all stood to profit. There would be no competition and, together, we had a better chance of staving off a possible new takeover attempt by Interbrew." Siljan represents 1,000 small shareholders who have a 5% control of Lasko. Now, the fire sale puts the brewery at risk for being sold way below its actual price.
As a result of loans that had turned sour after exports stalled when the global financial crisis ensued, Slovenia posted a €4.8 billion hole in its primarily state-run banking system a couple of weeks ago. The government said it would not need to be rescued as it could fix the gap on its own. However, the report said that for the solution to last, Slovenia must restructure an economy that is half-controlled by the state. It must also get rid of the policy of keeping local companies in domestic hands while the other European countries embrace Western capital.
While Lakso is not yet on the list of 15 companies that Slovenia wants to abandon its stakes in, it is still at the mercy of state banks that are looking to exit the brewery.
Alta brokerage Chief Analyst Saso Stanovnik told Reuters, "The most likely outcome is to find foreign buyers, possibly some European breweries, for parts of the Lasko group. With this, the story about 'national interest' in Lasko would have a very ironic ending, but probably a useful one for its further development."
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