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Factbox-Companies sell their businesses in Russia

06/28/2022 | 09:01am EDT

(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

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).

MICHELIN

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.

RENAULT The French carmaker said on May 16 it would sell its majority stake in Russia's biggest carmaker, Avtovaz, to a Russian science institute reportedly for just one rouble with a six-year option to buy it back.

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.

SOCIETE GENERALE

The French bank said on May 18 it had closed the sale of its Russian business Rosbank to the Interros group, a firm linked to Russian oligarch Vladimir Potanin.

The bank will take a 3.2 billion-euro ($3.4 billion) net income hit from the sale.

ELECTRICAL COMPONENTS & EQUIPMENT

KONE

The Finnish elevator maker said on June 28 it would sell its business in Russia to local management for an undisclosed amount.

SCHNEIDER ELECTRIC

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).

ENERGY

ENEL

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, 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).

EQUINOR

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, its long-term partner. Equinor also signed an agreement to exit the Kharyaga oil project.

FORTUM

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.

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 from Fortum.

SHELL

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, the companies said on May 12. Shell would not comment on the value of the deal.

FOOD & BEVERAGES

AB INBEV

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.

ATRIA

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 for about 8 million euros ($8.5 million).

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.

MCDONALD'S CORP

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.

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.

PIZZA HUT

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.

RAISIO

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).

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.

INDUSTRIAL MACHINERY

APATOR SA

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).

OC OERLIKON CORPORATION AG PFAEFFIKON

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.

PONSSE

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.

STORA ENSO

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.

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.

MINING

AMUR MINERALS CORP

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.

KINROSS GOLD CORP

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.

RETAIL

AUTHENTIC BRANDS GROUP

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.

LPP

The Polish clothing retailer said on May 19 it would sell its Russian company RE Trading to a Chinese consortium.

OTHERS

BRUNEL INTERNATIONAL

The Dutch employment services company is in the process of selling activities in Russia to local management, it said on April 29.

FLUGGER GROUP

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.

IMPERIAL BRANDS

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.

MAERSK

The Danish shipping company has found possible buyers for its 30.75% stake in Global Ports Investments, which operates ports in Russia, it said on May 4.

SOPRANO

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.

WHIRLPOOL

The U.S. home appliance maker agreed on June 27 to sell its Russian operations to Turkey's Arcelik. Whirlpool expects to record a $300-400 million loss in the second quarter in connection with the transaction.

YIT

The Finnish builder said on May 30 it had completed the sale of its Russian operations to Etalon Group PLC for about 50 million euros ($52.9 million).

ZURICH INSURANCE

The Swiss insurer said on May 20 it had agreed to sell its Russian business to 11 members of the local team.

($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 GadevaEditing by Andrew Heavens, Susan Fenton, Emelia Sithole-Matarise and Milla Nissi)


© Reuters 2022
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