Factbox: Companies sell their businesses in Russia
21/07/2022 13:45
(Adds HSBC)
July 21 (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 ($77.4 million). It
added the sale will result in an exceptional non-cash loss before tax of about
240 million pounds ($286.6 million). urn:newsml:reuters.com:*:nL3N2WQ1IH
IVECO IVG.MI
The Italian truck and bus maker said on July 13 it had transferred its 33%
stake in its AMT truck assembly joint venture in Russia to its local partner.
Asked about the financial terms of the transaction, Iveco's CEO replied "it's
not a matter of finance here". urn:newsml:reuters.com:*:nL8N2YU31U
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 ($254.6 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
HSBC HSBA.L
The British bank agreed to sell 100% of its Russia business to Expobank, a
spokesperson for the bank told Reuters by email on July 21. The deal was signed
shortly before Moscow said it would move to block the sale of foreign banks'
Russian businesses in retaliation for restrictions imposed on its own lenders.
urn:newsml:reuters.com:*:nL1N2Z20RL
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 ($3.3 billion) net income hit from the
sale.
CONSUMER ELECTRONICS
ELECTROLUX PROFESSIONAL EPROb.ST
The Swedish home appliance maker said on July 11 that it was selling its
business in Russia to local management and leaving the country. It will book a
one-off cost of 35 million Swedish crowns ($3.4 million) in the second quarter
related to the divestment. urn:newsml:reuters.com:*:nL8N2YS106
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
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 has agreed to sell its Russian unit to
local management, the company said on July 4. It expects to write off 300
million euros ($305.5 million) in net book value as a result of the divestment.
urn:newsml:reuters.com:*:nL1N2YL08I
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 ($139.5 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 ($1.32 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
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
TOTALENERGIES TTEF.PA
The French oil and gas company said on July 6 it had agreed to transfer its
remaining 20% stake in Russia's Kharyaga oil field to the country's state
producer Zarubezhneft. urn:newsml:reuters.com:*:nL8N2YN3OS
TRAFIGURA GROUP
The Singapore-based commodities trader said on July 13 that it had sold its
10% stake in Russia's Vostok Oil project in Siberia to Hong Kong-registered
trading firm Nord Axis. The price of the transaction was not disclosed.
urn:newsml:reuters.com:*:nL1N2YU0WC
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 ($8.2 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 U.S. 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
Yum Brands YUM.N said on July 5 it had completed the sale of its Pizza Hut
business in Russia to a local operator. The financial details of the sale were
not disclosed. urn:newsml:reuters.com:*:nL4N2YM2H3
Russian newspaper Kommersant had on June 7 reported the business was bought
from Poland-listed franchiser AmRest EATP.WA by Noi-M - a company linked to
Russian restaurant group Rosinter that operates the Russian franchises of Costa
Coffee and T.G.I. Friday's - for 300 million roubles ($5.3 million).
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
($1.5 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 ($87,719). urn:newsml:reuters.com:*:nFWN2XC0HL
DANFOSS
The Danish industrial company said on July 15 it had signed a deal to sell
its Russian and Belarusian business to local management. urn:newsml:reuters.com:*:nL1N2YW0YH
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 ($132.4
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
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
LVMH LVMH.PA
The French luxury company's beauty chain Sephora said on July 11 it was
selling its Russian subsidiary to the local general manager, but did not
disclose the price of the transaction. urn:newsml:reuters.com:*:nP6N2WW01M
SOK RETAIL
The Finnish firm agreed to sell its Prisma retail chain of 15 stores in
Saint Petersburg to Russian retail group X5 FIVEDR.MM for an undisclosed sum,
the buyer announced on June 16. urn:newsml:reuters.com:*:nL1N2Y30EX
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
ELOPAK ELO.OL
The Norwegian carton packaging and filling equipment supplier said on July
15 it agreed to sell its Russian unit JSC Elopak to Packaging Management and
Investing LLC, a company beneficially owned by the local management. The company
did not provide specifics on the purchase price or whether there was a clause in
the agreement that enabled Elopak to buy back the unit. urn:newsml:reuters.com:*:nL8N2YW4D2
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 ($15.8
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 ($268.7
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
NEXTERS 9T8.F
The international game developer said on July 12 it had decided to transfer
its gaming business in Russia to local management. urn:newsml:reuters.com:*:nFWN2YT0WX
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
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 ($50.6
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 = 0.9819 euros)
($1 = 0.8375 pounds)
($1 = 10.2426 Swedish crowns)
($1 = 57.0000 roubles)
($1 = 7.3075 Danish crowns)
(Compiled by Elena Vardon, Augustin Turpin, Enrico Sciacovelli, Ina Kreutz,
Elitsa Gadeva, Agnieszka Gosciak
Editing by Andrew Heavens, Susan Fenton, Emelia Sithole-Matarise and Milla
Nissi)
((gdansk.newsroom@thomsonreuters.com ; +48 58 7 69 66 00))