Swiss pumpmaker Sulzer to sell Russia business
24/05/2022 09:18
ZURICH, May 24 (Reuters) - Swiss engineering group Sulzer
SUN.S has put its Russia business up for sale, joining the
exit from the market hit by Western sanctions over Moscow's
invasion of Ukraine.
The sales process will begin immediately, it said https://www.sulzer.com/en/shared/news/220524-sulzer-to-exit-the-russian-market
on Tuesday without providing further detail. A spokesperson
said all options were open, including a buyout by local
management.
The company had already announced that it had scaled back
business in Russia, where it has 300 staff. Russia accounted for
2.7% of group sales of 3.2 billion Swiss francs ($3.33 billion)
in 2021.
"The board regrets the necessity of this decision after
decades of operations in Russia, but after careful review of the
possible options, concludes that it is the best solution for all
the stakeholders," it said.
The Swiss pumpmaker agreed in 2018 to buy 5 million shares
from shareholder Viktor Vekselberg, taking the Russian
oligarch's holding below the 50% threshold where U.S. sanctions
against Russian President Vladimir Putin's inner circle took
effect at the time.
It has started to wind down its business in Poland this
month due to sanctions levied by the Polish government on
Vekselberg.
Sulzer is fighting the Polish move as it views the sanctions
are unfair given that Vekselberg has no control over any group
businesses. urn:newsml:reuters.com:*:nL5N2X81J1
($1 = 0.9620 Swiss francs)
(Reporting by Michael Shields; editing by Jason Neely)
((Michael.Shields@thomsonreuters.com; +41 41 528 3630; Reuters
Messaging: michael.shields.thomsonreuters.com@reuters.net))