Probably with repurchase option
Mercedes-Benz joins the list of car groups that are selling the Russian companies. This also includes a fairly new factory near Moscow.
Mercedes-Benz is withdrawing from Russia and selling its shares in its industrial and financial services subsidiaries to Russian car dealer chain Avtodom. The factory that was only opened in 2019 (in the presence of Putin) near the Russian capital will also be transferred. More than €250 million was invested for its opening. Mercedes halted production in Russia in early March in response to the Russian invasion of Ukraine and wrote off more than €700 million in value on its operations in the country. The Association of European Businesses calculates that Mercedes-Benz sold 9,558 cars in Russia this year until September. Almost 73 percent less than last year.
According to Harald Wilhelm, financial chief of Mercedes-Benz, the transaction will not have major consequences for the profitability and financial position of the group. Mercedes-Benz Russia boss Natalia Koroleva says the main priorities in the transaction were meeting commitments to customers from Russia and preserving jobs in the company’s Russian divisions. A Mercedes-Benz spokesperson further said that the company’s 15 percent stake in Russian truck maker Kamaz will not be affected by the proposed transaction. Kamaz will be transferred as planned this year to Daimler Truck, which has been spun off from Mercedes-Benz.
According to Russian media, the deal with Avtodom may contain a buyback clause. Earlier, the Japanese carmaker Nissan and the French Renault already included similar clauses in the sales deals of their Russian activities. Nissan’s were transferred to a Russian state-owned company for one euro and Renault sold its majority stake in Russia’s Avtovaz for one ruble. Both Nissan and Renault have the option to buy back the businesses within six years.
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– Thanks for information from Autoweek.nl