Factbox: Companies sell their businesses in Russia
28/06/2022 14:01
(Adds Kone, Michelin, Ponsse, Whirlpool)
June 28 (Reuters) - Some Western companies have agreed to
sell their Russian assets or hand them over to local managers as
they scramble to comply with sanctions over the Ukraine conflict
and deal with threats from the Kremlin that foreign-owned assets
may be seized.
The moves, part of a broader corporate exodus from the
country, are likely to stir concerns that Russian firms and
institutions are snapping up prized assets for a bargain.
Below is a list of firms by sector that have announced deals
to sell their businesses in Russia:
AUTOS
INCHCAPE INCH.L
The British car distributor said on April 28 it had agreed
to sell its Russian business to local management for 76 million
euros ($80.4 million). It added the sale will result in an
exceptional non-cash loss before tax of about 240 million pounds
($293.7 million). urn:newsml:reuters.com:*:nL3N2WQ1IH
MICHELIN MICP.PA
The French tyre maker on June 28 announced plans to hand
over activities in Russia to a new entity under local management
by the end of the year. Michelin said it has balance sheet
exposure of 250 million euros ($264.5 million) from the Russian
operations. urn:newsml:reuters.com:*:nL8N2YF1I4
RENAULT RENA.PA
The French carmaker said on May 16 it would sell its
majority stake in Russia's biggest carmaker, Avtovaz
AVAZI_p.MM , to a Russian science institute reportedly for just
one rouble with a six-year option to buy it back. urn:newsml:reuters.com:*:nL5N2X80RL
Renault said 100% of the shares in Renault Russia would go
to the city of Moscow.
BANKS
PPF
The Czech investment group confirmed on May 31 it had sold
100% of its Russian banking assets, consumer lender the Home
Credit and Finance Bank and its subsidiaries, to a group of
investors led by Ivan Tyryshkin. urn:newsml:reuters.com:*:nL2N2X90JC urn:newsml:reuters.com:*:nP7N2UX016
SOCIETE GENERALE SOGN.PA
The French bank said on May 18 it had closed the sale of its
Russian business Rosbank ROSB.MM to the Interros group, a firm
linked to Russian oligarch Vladimir Potanin. urn:newsml:reuters.com:*:nL2N2XA260
The bank will take a 3.2 billion-euro ($3.4 billion) net
income hit from the sale.
ELECTRICAL COMPONENTS & EQUIPMENT
KONE KNEBV.HE
The Finnish elevator maker said on June 28 it would sell its
business in Russia to local management for an undisclosed
amount. urn:newsml:reuters.com:*:nL8N2YF198
SCHNEIDER ELECTRIC SCHN.PA
The French electrical equipment maker will sell its
operations in Russia and Belarus to local management, the
company said on April 27, as it signed a letter of intent with
the designated buyers.
It will write off up to 300 million euros ($317.3 million)
of net book value and make a non-cash reversal of currency
translation estimated at 120 million euros ($126.5 million).
urn:newsml:reuters.com:*:nL5N2WP1R4
ENERGY
ENEL ENEI.MI
The Italian utility said on June 16 it had agreed to sell
its 56.43% stake in Enel Russia for around 137 million euros
($144.9 million) to Russia's second-largest oil producer, Lukoil
LKOH.MM , and private fund Gazprombank-Frezia. The sale will
have a negative impact on reported group net income of about 1.3
billion euros ($1.4 billion). urn:newsml:reuters.com:*:nL8N2Y35FF
EQUINOR EQNR.OL
The Norwegian oil and gas company said on May 25 it had
exited its four Russian oil and gas joint ventures, transferring
assets to state-owned Rosneft ROSN.MM , its long-term partner.
Equinor also signed an agreement to exit the Kharyaga oil
project. urn:newsml:reuters.com:*:nL5N2XH3QF
FORTUM FORTUM.HE
The Finnish utility plans to sell its Russian power assets
by July 1, with major Russian companies among likely bidders,
Kommersant daily reported on June 14, citing sources.
urn:newsml:reuters.com:*:nL1N2Y10BE
The RIA news agency reported on June 16 that Russian energy
firm T Plus will bid for Fortum's Russian assets, while TASS
reported that Gazprom is considering acquiring shares in
regional Russian power company TGK-1 TGKA.MM from Fortum.
urn:newsml:reuters.com:*:nR4N2XO02G urn:newsml:reuters.com:*:nR4N2XO025
SHELL SHEL.L
The British energy and petrochemical giant will sell its
Russian retail and lubricants business, which includes 411
retail stations and the Torzhok lubricants blending plant, to
Russia's Lukoil LKOH.MM , the companies said on May 12. Shell
would not comment on the value of the deal. urn:newsml:reuters.com:*:nL3N2X42CT
FOOD & BEVERAGES
AB INBEV ABI.BR
The Dutch brewer said on April 22 it would sell its
non-controlling stake in its Russian joint venture AB InBev
Efes, taking a $1.1 billion impairment charge in the first
quarter. urn:newsml:reuters.com:*:nL5N2WK1GY
ATRIA ATRAV.HE
The Finnish food processing company said on May 16 it had
sold its fast food business in Russia, Sibylla Rus, to Russian
meat producer Cherkizovo GCHE.MM for about 8 million euros
($8.5 million). urn:newsml:reuters.com:*:nL2N2X80HW
FAZER
The Finnish bakery and food service company said on April 29
it had agreed to sell its Russian unit to Moscow's Kolomenskij
Bakery and Confectionery Holding for an undisclosed amount.
urn:newsml:reuters.com:*:nL2N2WR1P2
MCDONALD'S CORP MCD.N
The American fast food giant said on May 19 it would sell
its Russian business to its current licensee Alexander Govor and
the restaurants would operate under a new brand. It did not
disclose the financial terms of the transaction. urn:newsml:reuters.com:*:nL3N2XB24Z
PAULIG
The privately owned Finnish food and drinks company said on
May 5 it had sold its operations in Russia to private Indian
investor Vikas Soi. urn:newsml:reuters.com:*:nL2N2WX10Z
PIZZA HUT EATP.WA
Pizza Hut's Russian franchise has been bought from
Poland-listed franchiser AmRest by Noi-M - which is linked to
restaurant group Rosinter that operates the Russian franchises
of Costa Coffee and T.G.I. Friday's - for 300 million roubles
($5.2 million), Kommersant reported on June 7. urn:newsml:reuters.com:*:nL1N2XU0FW
RAISIO RAIVV.HE
The Finnish food processing company said on April 29 it had
agreed to sell its consumer business in Russia to Copacker Agro
Ltd for about 1.5 million euros ($1.6 million). urn:newsml:reuters.com:*:nL5N2WR6BP
VALIO
The Finnish dairy producer has sold its Russian business to
GK Velkom, the company said on April 26. Valio gave no financial
value for the deal. urn:newsml:reuters.com:*:nL2N2WO0OG
INDUSTRIAL MACHINERY
APATOR SA APTP.WA
The Polish switchgear and metering devices company Apator
announced on May 20 its Powogaz unit had divested its entire
stake in Russia-based AO Teplovodomer for 5 million roubles
($93,661). urn:newsml:reuters.com:*:nFWN2XC0HL
OC OERLIKON CORPORATION AG PFAEFFIKON OERL.S
The Swiss industrial group said on June 2 it had agreed with
local management to sell its business in Russia, which will
continue to operate independently under new owners. urn:newsml:reuters.com:*:nFWN2XO0R6
PONSSE PON1V.HE
The Finnish forest machine maker said on June 28 it had sold
its subsidiary operating in Russia and Belarus for an
undisclosed sum to OOO Bison, a Russian company set up a month
earlier by the owner of its local retailer. urn:newsml:reuters.com:*:nL8N2YF1BW
STORA ENSO STERV.HE
The Finnish forestry firm has completed its exit from Russia
with the sale of three packaging plants to local management, it
said on May 16. urn:newsml:reuters.com:*:nL2N2X80AE
In April, Stora agreed to sell two sawmills and their forest
operations in Russia to local management, causing it to record a
130 million-euro ($137.5 million) loss. urn:newsml:reuters.com:*:nL2N2WN0J6
MINING
AMUR MINERALS CORP A7L.L
The London-listed Russian mining company on May 9 announced
a proposed sale of its main Kun-Manie project for $105 million
to Stanmix Holding Limited, a company controlled by Vladislav
Sviblov. urn:newsml:reuters.com:*:nTUC8VsDN8
KINROSS GOLD CORP K.TO
The Canadian gold miner said on June 15 it had sold its
Russian assets to the Highland Gold Mining Group for $340
million in cash, half of the previously announced price.
urn:newsml:reuters.com:*:nL4N2Y22OV
RETAIL
AUTHENTIC BRANDS GROUP AUTH.N
Turkish shoe retailer FLO Magazacilik is in talks to buy
more than 100 stores of the Reebok fitness brand in Russia,
owned by the Authentic Brands Group, FLO chairman said on May
16, but added a deal had not been finalised. urn:newsml:reuters.com:*:nL2N2X80I8
LPP LPPP.WA
The Polish clothing retailer said on May 19 it would sell
its Russian company RE Trading to a Chinese consortium.
urn:newsml:reuters.com:*:nL2N2XB1O6
OTHERS
BRUNEL INTERNATIONAL BRUN.AS
The Dutch employment services company is in the process of
selling activities in Russia to local management, it said on
April 29. urn:newsml:reuters.com:*:nASM0009LM
FLUGGER GROUP FLUGb.CO
The Danish paint maker said on April 8 it had initiated the
sale of its Russian and Belarusian companies, taking a 115
million Danish crown ($16.4 million) write-down. urn:newsml:reuters.com:*:nFWN2W60G1
IMPERIAL BRANDS IMB.L
The British tobacco group said on May 17 that the deal to
sell its business in Russia to "investors based in Russia" was
closed and did not include a clause allowing it to buy back its
business there in future. The group had previously said it was
booking an estimated charge of 225 million pounds ($275.3
million) for the transaction. urn:newsml:reuters.com:*:nL2N2X90DA urn:newsml:reuters.com:*:nTUC5NGXGR
MAERSK MAERSKb.CO
The Danish shipping company has found possible buyers for
its 30.75% stake in Global Ports Investments GLPRq.L , which
operates ports in Russia, it said on May 4. urn:newsml:reuters.com:*:nL2N2WW0B3
SOPRANO SOPRA.HE
The Finnish training company said on May 19 it had sold its
unit in Russia to local management, adding the sale would not
significantly impact its results. urn:newsml:reuters.com:*:nFWN2XB0K1
WHIRLPOOL WHR.N
The U.S. home appliance maker agreed on June 27 to sell its
Russian operations to Turkey's Arcelik ARCLK.IS . Whirlpool
expects to record a $300-400 million loss in the second quarter
in connection with the transaction. urn:newsml:reuters.com:*:nL4N2YF25G
YIT YIT.HE
The Finnish builder said on May 30 it had completed the sale
of its Russian operations to Etalon Group PLC ETLNGq.L for
about 50 million euros ($52.9 million). urn:newsml:reuters.com:*:nL8N2XN15S
ZURICH INSURANCE ZURN.S
The Swiss insurer said on May 20 it had agreed to sell its
Russian business to 11 members of the local team. urn:newsml:reuters.com:*:nL5N2XC0OH
($1 = 0.9456 euros)
($1 = 0.8172 pounds)
($1 = 53.3840 roubles)
($1 = 7.0341 Danish crowns)
(Compiled by Elena Vardon, Augustin Turpin, Enrico Sciacovelli,
Ina Kreutz, Elitsa Gadeva
Editing by Andrew Heavens, Susan Fenton, Emelia Sithole-Matarise
and Milla Nissi)
((gdansk.newsroom@thomsonreuters.com ; +48 58 7 69 66 00))