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Whirlpool to exit Russia, take $300 mln-$400 mln hit in second quarter

June 28 (Reuters) - Whirlpool Corp  WHR.N  has struck a deal
to sell its operations in Russia to Turkish appliances maker
Arçelik AS  ARCLK.IS , the U.S. company said on Tuesday, a move
which will see it join a raft of Western firms exiting the
sanctions-hit country.
    The deal, which also includes Whirlpool's sales operations
in Kazakhstan and other select countries in Commonwealth of
Independent States (CIS), will result in a loss of $300 million
to $400 million in the current quarter, the company said in a
regulatory filing https://www.sec.gov/ix?doc=/Archives/edgar/data/106640/000010664022000105/whr-20220627.htm.
    The transaction consideration is expected to be made in the
form of deferred payments over a 10-year period and is capped
based on the net asset value of the business, which is currently
estimated at about 220 million euros ($233 million).
    Whirlpool in March had said it would scale down its
operations in Russia, as Western countries ratcheted up
sanctions on Moscow over its invasion of Ukraine, making it
nearly impossible for manufacturers to do business there.
    Since then, Western companies such as Cisco Systems Inc
 CSCO.O  and Nike Inc  NKE.N  have announced they would exit
Russia.  urn:newsml:reuters.com:*:nL1N2YA1H6
    "The company, as a U.S. company, is taking this action given
the current operating environment in Russia," Whirlpool said in
the filing.
    Its manufacturing site in Lipetsk, Russia will continue to
manufacture appliances under the Indesit, Hotpoint and Stinol
brands after the deal closes, Whirlpool added.

($1 = 0.95 euros)

 (Reporting by Abhijith Ganapavaram in Bengaluru; Editing by
Maju Samuel)
 ((Abhijith.G@thomsonreuters.com; +91-9019785574;))

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