Turkey's FLO in talks to take over Reebok's stores in Russia - chairman

Anadolu Efes Biracilik ve Malt Sanayii

16/05/2022 11:40

By Ceyda Caglayan
    ISTANBUL, May 16 (Reuters) - Turkish shoe retailer FLO
Magazacilik is in talks to buy more than 100 stores owned by
fitness brand Reebok in Russia, FLO Chairman Mehmet Ziylan said
on Monday, as Western companies rush to comply with sanctions
over the Ukraine conflict.
    Ziylan said a deal had not been finalised, denying a report
in Russian daily Kommersant that the company had already taken
over the business.
    "We are talking, but there is nothing more definite," Ziylan
told Reuters.
    Kommersant cited a source close to FLO Retailing as saying
the deal had been finalised and more than 100 Reebok outlets in
Russia had passed to the Turkish company's control.  urn:newsml:reuters.com:*:nL5N2X81PZ
    Authentic Brands Group  AUTH.N  which owns Reebok was not
immediately available to comment due to the early hour in the
United States.
    In March, the U.S. company suspended all branded stores and
e-commerce operations in Russia.
    Kommersant cited analysts as saying the deal, which would
give FLO its first shops in the country, could be worth as much
as 1.5 billion roubles ($24.8 million).
    Ziylan said FLO currently makes wholesale sales to Russia,
but does not have its own stores there.     
    The deal is likely to stir concerns that firms in Russia and
countries not involved in Western sanctions are snapping up
prized assets as Western companies rush to comply with sanctions
over the Ukraine conflict, as well as threats from the Kremlin
that foreign-owned assets may be seized.
    Last month Anheuser-Busch InBev  ABI.BR  said it plans to
exit Russia by selling its interest in a joint venture with
Turkish brewer Anadolu Efes  AEFES.IS  that operates in Russia
and Ukraine and expects to take a $1.1 billion charge as a
result.  urn:newsml:reuters.com:*:nL2N2WK0SX
    Asked about investing in Russia when many international
brands had left the country following Russia's invasion of
Ukraine, Ziylan said the company will follow the Turkish
government's policy on the issue.
    "Our country does not have an embargo there. We will
continue as long as our country does not tell us to stop," he
said.
    NATO member Turkey, a Black Sea neighbour of Russia and
Ukraine, has good ties with the warring nations and has opposed
Western sanctions on Moscow.
    Ziylan declined to say the size of a possible deal.

 (Writing by Daren Butler
Editing by Josephine Mason and David Evans)
 ((daren.butler@tr.com; +90-212-350 7053; Reuters Messaging:
daren.butler.thomsonreuters.com@reuters.net))