Danone ‘to sell off operations in Russia’
Danone is reportedly intending to sell its operations in Russia to local dairy group Vamin Tatarstan. The reports have emerged a day before the French giant is due to release its 2023 annual results.
The Activia maker is said to be set to sell its business in the country to the Russian cheese and butter maker for Rbs17.7bn ($191m), according to a letter viewed by The Financial Times.
The owner of Vamin Tatarstan, Mintimer Mingazov, has agreed to pay Rbs10bn to Danone for its equity and Rbs7.7bn to go towards debt servicing.
The reports have emerged a day before the French giant, which was in the process of selling its operations in Russia, is due to release its 2023 annual results.
Danone’s Russian operations were seized by the Kremlin last July, with the stakes of the company being put under the “temporary management” of Rosimushchestvo, the national government property agency.
The Kremlin appointed Chechnya’s minister for agriculture, Yakub Zakriev, to manage Danone’s Russian branch.
When asked for comment on the latest sale by Just Food, Danone said: “As you remember, in July 2023, Danone Russia (EDP), now known as H&N, was placed under the temporary external administration of the Russian Federal Agency; while Danone remained the legal owner of the assets, the company lost the management control of the business and has accordingly fully deconsolidated its EDP Russia entities from July 2023.
“Since the announcement, our focus was to ensure the safety of our people while protecting Danone’s assets and rights. Given the uncertainty and volatility of the situation, we can’t comment further.”
Just Food
Related news
Everything is well if it starts well
Serving breakfast any time of the day is becoming an…
Read more >Inflation accelerated in Russia in January
In Russia, annual inflation accelerated to 9.92 percent in January…
Read more >There is trouble around the house of Mere
The Russian retail watchdog, Roskomnadzor, conducted a comprehensive inspection of…
Read more >Related news
OKSZ: margin is not profit!
The international food retailer member companies of the National Trade…
Read more >Viktor Orbán on Kossuth Radio: traders cannot add more than 10 percent to the purchase price
Traders cannot add more than 10 percent to the purchase…
Read more >Margin freeze versus VAT reduction: a solution to inflation or a field for political debate?
The government has been implementing a margin freeze since mid-March,…
Read more >