- European companies are diligently looking for contractors who will take over their business, even at a promotional price. And although it is difficult to sell, there are people from China, India and Turkey. In addition, the Kremlin likes to threaten with the confiscation of property from companies from “hostile countries”, which affects the imagination of hesitating owners
- A big battle for a powerful technology company is about to take place. The owner of OLX plans to sell his Russian branch, worth up to $ 6 billion before the war.
- During the asset sale in Russia, the oligarchs expand their empire. Transactions such as the sale of an automotive concern by Renault for a symbolic one ruble are a tasty morsel for them
- You can find more such information on the Onet homepage
It is not profitable for many Western companies to stay in Russia. Profitable operation is hampered by sanctions, and there are also image losses and the consequences in other markets resulting from the boycott of indignant consumers.
Big sale
From the perspective of Europe, it might seem that there are no people willing to buy a property in Russia. Business from countries that have relations with Russia, however, perceives an opportunity to enter that market.
Intensive talks are underway regarding the sale of the Russian branch of Unicredit. The Italian bank, which is the 14th largest lender in Russia, wants to withdraw due to sanctions. In the present situation, the Russian branch is weighing on the entire group. Unofficially, it is looking for a buyer from Turkey, India or China. The first of these countries is already actively purchasing in Russia. For example, it fights for around 100 Reebok stores. The Turkish footwear company FLO would take them over.
Offers on Western assets from entities outside of Russia are often accepted as a salvation by the capital planned to be siphoned off there. It is a form of escape from the forced nationalization of property, which the Kremlin likes to scare entities from countries that are reluctant to it. It was precisely out of fear of repercussions that the Finnish beverage producer Paulig decided to hurriedly sell its plants to the Indian investor Vikas Soi.
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Concerns about the forcible seizure of assets by Moscow grew after Finland officially announced its accession to NATO. That is why Paulig is not the only Finnish company to leave Russia. Raisio, a health food supplier, sold his capabilities to Russian Copacker Agro. The price was highly “promotional” – the estimated impairment loss is EUR 2.9 million, and the transaction value is approximately EUR 1.5 million.
Polish companies also find such contractors. Until recently, LPP, which had about 600 clothing stores in Russia, sold them to the Chinese. Cersanit, owned by Michał Sołowow, in turn sold its three Russian plants to a fund from the Middle East.
Compulsory rerusification
Now the Russian market is getting ready for a real bomb. This is the escape from Russia of the Dutch Prosus controlling the e-commerce OLX group. In Russia, the company employs approx. 4 thousand. people. Before the war, the branch was valued at up to $ 6 billion. Prosus also has 27 percent. in the Russian community giant VK, worth approx. $ 770 million. The company is currently looking for contractors. “It will not be a surprise if a state-related company or a businessman takes over,” predicted publicist Louis Auge on the EU Reporter portal.
It is Russian entities that are first in line for most of the Western wealth. French companies leaving the country have found out about it. Renault, which until recently owned shares of the most important automotive company AvtoVAZ (producing the famous Lada), gave its controlling stake for a symbolic ruble. And so he had serious problems with maintaining the liquidity of production. However, he retained the right to buy back the shares within six years.
A feast for the oligarchs
Now the concern has been taken over by the Central Institute for Automotive and Engine Research and Development (NAMI), which originated from the Soviet Union. The former Minister of Transport, Maxim Sokolov, became the new director.
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The story of Shell’s assets bought back by well-known in Poland Lukoil. The transaction includes 411 petrol stations and a lubricant mixing plant. However, the company does not disclose the amount of the sale.
Rosbank, previously managed by the French Société Générale, also returned to “the domination of the motherland”. Its purchase by the Interros fund expands the empire of one of the country’s greatest oligarchs – Vladimir Potanin – a metallurgical tycoon. He also sensed an opportunity for building capital Alexander Govorow, who decided to buy the restaurant from McDonald’swho was previously a franchisee of the company. As he stressed, he paid a price “well below the market price”.
Other scenarios
Selling the company to non-boycotting capital from Russia or putting it under the control of the oligarchs are the most common, though not the only, scenarios. Another solution is the enfranchisement of employees, i.e. putting companies under the control of managers who previously worked there. This is what French supplier of electronic components Schneider Electric. As part of the transaction, Schneider Electric sold Russian and Belarusian assets worth EUR 300 million. The Swiss insurance company Zurich Insurance did a similar thing.
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