Factbox: Companies sell their businesses in Russia
16/05/2022 10:35
(Updates with Reebok, Renault, Shell, Stora Enso)
May 16 (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 secured deals
to sell their businesses in Russia:
AUTOMAKERS
INCHCAPE INCH.L
The British car distributor said it had agreed to sell its
Russian business to local management. The sale will result in an
exceptional non-cash loss before tax of about 240 million pounds
($294 million). urn:newsml:reuters.com:*:nL3N2WQ1IH
RENAULT RENA.PA
The French carmaker said on May 16 it will sell its majority
stake in Russia's biggest carmaker, Avtovaz AVAZI_p.MM , to the
Russian Central Research and Development Automobile and Engine
Institute (Nami), with a six-year option to buy back the stake.
urn:newsml:reuters.com:*:nL5N2X80RL
Renault also said that 100% of the shares in Renault Russia
will go to the city of Moscow.
Russia had said on April 27 that Renault would transfer its
67.69% stake in Avtovaz to the institute for the symbolic sum of
one rouble. urn:newsml:reuters.com:*:nL2N2WO310
BANKS
SOCIETE GENERALE SOGN.PA
The French lender expects to close the sale of its Rosbank
ROSB.MM unit to Russia's Interros Capital "in the coming
weeks," it said on May 5. urn:newsml:reuters.com:*:nL5N2WX3BG
It announced the sale on April 11, adding it would write off
3.1 billion euros ($3.2 billion), comprising a 2 billion-euro
hit on Rosbank's book value and the rest linked to the reversal
of rouble conversion reserves. urn:newsml:reuters.com:*:nL2N2W90AJ
ELECTRICAL COMPONENTS & EQUIPMENT
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 ($312 million) of
net book value and make a non-cash reversal of currency
translation estimated at 120 million euros. urn:newsml:reuters.com:*:nL5N2WP1R4
ENERGY
SHELL SHEL.L
The British energy and petrochemical giant will sell its
Russian retail and lubricants business to Russia's Lukoil
LKOH.MM , the companies said on May 12. The deal includes 411
retail stations and the Torzhok lubricants blending plant. Shell
would not comment on the value of the deal. urn:newsml:reuters.com:*:nL3N2X42CT
FOOD & BEVERAGES
AB INBEV ABI.BR
The brewer said on April 22 it would sell its
non-controlling stake in its Russian joint venture AB InBev
Efes. The divestiture will result in a $1.1 billion impairment
charge in the first quarter. The joint venture has 11 breweries
in Russia and three in Ukraine. urn:newsml:reuters.com:*:nL5N2WK1GY
FAZER
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. Fazer did not disclose the
value of the transaction. urn:newsml:reuters.com:*:nL2N2WR1P2
PAULIG
The privately owned Finnish food and drink company said on
May 5 it had sold its operations in Russia to private Indian
investor Vikas Soi, after being mentioned by Russian authorities
as an example of a foreign company that could be nationalised.
It said the divesture includes the Paulig Rus LLC unit and
Paulig's operations, as well as its coffee roastery in Tver, but
not the Paulig brand, which will be phased out in Russia over
the coming months. urn:newsml:reuters.com:*:nL2N2WX10Z
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). As a result of
the sale, Raisio said it would recognise an estimated impairment
loss of 2.9 million euros in its Q1 earnings before interest and
taxes. urn:newsml:reuters.com:*:nL5N2WR6BP
VALIO
The Finnish dairy producer has sold its Russian business to
GK Velkom, the company said on April 26, following an earlier
threat by Russian authorities to nationalise its business there.
Valio said the transaction would take effect immediately but
gave no financial value for it. urn:newsml:reuters.com:*:nL2N2WO0OG
MINING
AMUR MINERALS CORP A7L.L
The London-listed Russian mining company announced on May 9
it proposed to sell its main Kun-Manie project for $105 million
and agreed to assign to buyer benefit of all loans owed by
Kun-Manie to Amur in consideration for $30 million. urn:newsml:reuters.com:*:nTUC8VsDN8
KINROSS K.TO
Kinross Gold Corp is selling its Russian assets to the
Highland Gold Mining group of companies for a total of $680
million in cash, the Canadian gold miner said on April 5, nearly
a month after suspending its operations in the country.
urn:newsml:reuters.com:*:nL3N2W31F8
OTHERS
AUTHENTIC BRANDS GROUP AUTH.N
The Russian business of Authentic Brands Group-owned Reebook
has been taken over by Turkey's FLO retailing, Kommersant daily
reported on May 16. Analysts Kommersant said the deal could be
worth 1.5 billion roubles ($24.26 million). urn:newsml:reuters.com:*:nL5N2X818H
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, adding its net investment in the country at end-March
was 14 million euros ($14.6 million). 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 crowns ($16.1 million) write-down. urn:newsml:reuters.com:*:nFWN2W60G1
IMPERIAL BRANDS IMB.L
The British tobacco group announced the transfer of its
Russian business to investors based in Russia on April 20,
following talks with an unidentified third party in March.
urn:newsml:reuters.com:*:nTUC5NGXGR urn:newsml:reuters.com:*:nL3N2VI1Y4
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
STORA ENSO STERV.HE
The Finnish forestry firm has completed its exit from Russia
with the sale of three corrugated packaging plants to local
management, it said on May 16. urn:newsml:reuters.com:*:nL2N2X80AE
At the end of April, Stora said it had agreed to sell its
two sawmills and their forest operations in Russia to local
management, causing it to record a 130 million euro ($136
million) loss. urn:newsml:reuters.com:*:nL2N2WN0J6
YIT YIT.HE
The Finnish builder has signed an agreement with Etalon
Group PLC ETLNGq.L for the sale of its operations in Russia
for about 50 million euros ($52 million). As a result of the
sale, YIT said it would book an impairment of about 150 million
euros in its first quarter income statement.
($1 = 0.8172 pounds)
($1 = 0.9616 euros)
($1 = 7.1521 Danish crowns)
($1 = 61.8340 roubles)
(Compiled by Elena Vardon, Augustin Turpin, Enrico Sciacovelli,
Ina Kreuz; Editing by Mark Potter, Jan Harvey and Andrew
Heavens)
((gdansk.newsroom@thomsonreuters.com ; +48 58 7 69 66 00))