Cyprus Mail
BusinessInternationalRussia

Danone to withdraw from Russia with €1 bln write-off

danone

French food company Danone (DANO.PA) said on Friday it would shed its dairy food business in Russia in a deal that could lead to a write-off of up to 1 billion euro ($978 million), the latest costly exit from the country by a global company.

“This is the best option to ensure long-term local business continuity”, Danone said in a statement, adding the Russian unit accounted for roughly 5 per cent of the group’s net sales in the first nine months of the year.

Shortly after Russia’s invasion of Ukraine in February, Danone had said that all options regarding its local business were on the table.

Danone did not disclose to whom it would transfer the so-called Essential Dairy and Plant-based (EDP) unit. It said the transaction was subject to regulatory approvals and if completed would result in the deconsolidation of the EDP business from its accounts.

Danone’s planned exit from Russia is the second such announcement this week from a major Western company, coming after Nissan sold its assets for a symbolic rouble to the state, taking a loss of around $687 million.

($1 = 1.0224 euros)

Follow the Cyprus Mail on Google News

Related Posts

Government employment increases by 5.2 per cent in January

Souzana Psara

Alpha Bank pledges commitment to Cyprus economy in meeting with president

Souzana Psara

Israel bombards Gaza, with biggest functioning hospital under siege

Reuters News Service

Putin opponent Navalny dies in Arctic jail, Russia says

Reuters News Service

Investment funds fueling sustainable growth in Cyprus, association says

Kyriacos Nicolaou

Google enables OS upgrades for older PCs post-Windows 10 support cutoff

Reuters News Service