Danone has received permission to sell its business in Russia
Source: DairyNews
The French company Danone has received permission from Russian regulators to sell its assets in the Russian Federation, with losses from the deal estimated at €1.2 billion. This was stated in a company announcement.
"On March 22, Danone announced that it has received approvals from Russian regulatory authorities necessary for the transfer of its EDP business in Russia to LLC Vamin R. The completion of this transaction is expected in the coming weeks," the statement said.
Recall that Danone initiated the process of transferring this business in October 2022. In July 2023, Danone liquidated EDP Russia from its accounts after losing control by management. The total loss reflected by Danone on its accounts amounts to 1.2 billion euros.
At the end of February, the British newspaper Financial Times wrote that Danone, whose assets were transferred to temporary management by Rosimushchestvo, plans to sell its business in Russia for 17.7 billion rubles ($191.5 million) to Vamin Tatarstan. It was noted that 7.7 billion rubles of this amount would go towards servicing the debt of the Russian enterprise, while the rest would be for payment of Danone's share in the company.
In October 2022, Danone announced its intention to transfer operational control of the business of fresh dairy products and plant-based products in Russia. However, on July 16, 2023, a decree by Russian President Vladimir Putin was published on the official portal of legal acts regarding the transfer of shares of foreign owners in the Russian structure of the French dairy product manufacturer to temporary management by Rosimushchestvo. In July 2023, the CEO of Danone Russia became Chechnya's Minister of Agriculture Yakub Zakriyev.
Recall that Danone initiated the process of transferring this business in October 2022. In July 2023, Danone liquidated EDP Russia from its accounts after losing control by management. The total loss reflected by Danone on its accounts amounts to 1.2 billion euros.
At the end of February, the British newspaper Financial Times wrote that Danone, whose assets were transferred to temporary management by Rosimushchestvo, plans to sell its business in Russia for 17.7 billion rubles ($191.5 million) to Vamin Tatarstan. It was noted that 7.7 billion rubles of this amount would go towards servicing the debt of the Russian enterprise, while the rest would be for payment of Danone's share in the company.
In October 2022, Danone announced its intention to transfer operational control of the business of fresh dairy products and plant-based products in Russia. However, on July 16, 2023, a decree by Russian President Vladimir Putin was published on the official portal of legal acts regarding the transfer of shares of foreign owners in the Russian structure of the French dairy product manufacturer to temporary management by Rosimushchestvo. In July 2023, the CEO of Danone Russia became Chechnya's Minister of Agriculture Yakub Zakriyev.
