You are not logged in.
Czech Republic: Budvar secure despite Gov't woes
30 March, 2009
Czech brewery Budweiser Budvar believes its future as a state-owned company is secure, despite the collapse of the Czech Government.
Czech brewery Budweiser Budvar believes its future as a state-owned company is secure, despite the collapse of the Czech Government.
Last week, the Czech Republic’s centre-right Government lost a vote of no confidence after four rebel MPs voted with the Social Democrats and Communists against Prime Minister Mirek Topolanek.
The country, which is half way through its six-month European Union presidency, is believed to have scheduled a re-election for October.
According to Budvar, the present Government said there was no question of privatisation before the mandatory election in 2010.
Budvar UK PR controller Denis Cox said: “Public opinion is also against such a move.
“Opinion polls suggest that an election would result in a victory for the opposition left of centre Social Democrats.”
According to Cox, this would have positive consequences for the future of Budvar as the Social Democrats have pledged not to sell the brewery should they win.
Cox added: “It should also be remembered that the brewery becoming a conventional joint stock company doesn’t automatically mean that it is up for grabs by any means, rather it would enable Budvar to expand its brewing interests by acquisition – something its present set up precludes.
“The other question is who, given the present economic climate, would have the money to buy Budvar, especially given the on-going trademark dispute and how its owners, the Czech Government, would get proper value for it.”
Cox concluded: “In any event a sale, if at all, would be a long way off.”
