Carlsberg Group, the world's fourth-largest brewery group, has announced its entry into the Myanmar market.

The Danish brewer has signed a strategic partnership agreement with Myanmar Golden Star (MGS) Breweries. Carlsberg will be 51pc owner of the newly formed Myanmar Carlsberg Co, Ltd. Under the agreement Carlsberg plans to brew and market beer in the country under its world-renowned label.

"We have followed the developments in Myanmar closely and are encouraged by the recent political developments in the country. We believe that the timing is right for us to invest in the country. We expect that the Myanmar beer market will grow strongly in coming years as the economy expands," Roy Bagattini, senior vice president of Carlsberg for Asia, said in a statement released by the company on February 1.

A signing ceremony was scheduled to take place in Yangon on the evening of February 1 at Chatrium Hotel. Carlsberg has said that it will establish a greenfield brewery but a mooted location in Bago Region is not yet confirmed.

"As an industry leader, Carlsberg is bringing in its expertise, innovation and international standards. This, combined with MGS Group's already well-established capabilities and local position in the market, will enable us to capitalize on the significant growth potential of the beer category," said U Thant Zin Tun, vice chairman of MGS Group of Companies, the parent company of MGS Breweries.

MGS Group of Companies is privately owned by U Thein Tun. MGS Beverages produces the carbonated soft drink brands Quench, Crusher Sip and Star Cola, as well as Popa brand bottled water. In 1991 a partnership with MGS brought PepsiCo to Myanmar for the first time.

Carlsberg abandoned plans to enter Myanmar with U Thein Tun in 1996 under mounting pressure from human rights activists and threats of a boycott of the brand.