Budvar privatisation on hold

Czech Prime Minister Mirek Topolánek has announced that the controversial privatization of the Budvar beer company will be delayed. Specifically, Mr Topolánek noted that the privatization of the company, which is currently in state ownership cannot be completed before the current government’s mandate expires in 2010. The government’s plan is for a two-phased sell off – firstly the company would be transformed into a limited company with the majority of shares owned by the government. After that, the company would be sold off. It remains unclear whether the delay is connected to the recent proposed merger of Anheuser-Busch and InBev, which would create the world’s largest beer company. Czech politicians remain keenly aware of public demands of keeping Czech Budweiser independent of its American – now Belgian-owned rival.