The French company Michelin announced the sale of the Russian business, which was bought by the tire distributor LLC Power International Tyres, according to the organization’s website.
The tire maker did not mention the cost of the transaction, and the costs of leaving the country will be reflected in the financial statements in May. Adjusted for the exchange rate, they are estimated at tens of millions of euros.
According to Michelin, the Russian government has approved the sale agreement. After leaving, the company’s employees will continue to work at the company in Davydkovo. In total, 250 people are employed in Russia.
The company suspended the production of tires in April last year in connection with the entry of the RF Armed Forces into the territory of Ukraine. A year later, Michelin reported a quarterly decline in production in the first quarter.
The company announced plans to exit the Russian market in the summer. Then Michelin was going to cede the activities in Russia to the local management until the end.
Author:
Natalia Gormaleva
Source: RB
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