Russia: Mondi scraps deal to sell largest plant to local company due to delay in govt.'s approval, reaffirms its commitment to divest in future
UK's Mondi scraps $1.17 bln deal to sell largest Russian plant, 5 June 2023
Must saMondi Plc...said it terminated a 95 billion rouble ($1.17 billion) deal to sell its largest plant in Russia to an investment vehicle owned by Russian billionaire Viktor Kharitonin due to a "lack of progress" in getting approvals...
This marks a rare example of a company scrapping a deal to sell assets in Russia, where the Kremlin has put pressure on Western companies to sell to local investors or companies from countries friendly to Russia.
The company had agreed to sell Mondi Syktyvkar, a pulp, packaging paper and uncoated fine paper mill located in the capital of the Komi Republic in Russia, to Augment Investments in August last year.
While the deal with Augment Investments was off, Mondi said it "remained committed to divest the plant and will continue to assess all alternative divestment options"...
Separately, Mondi had agreed to sell three of its Russian packaging converting operations to Moscow-based Gotek Group for 1.6 billion roubles in December.
That deal remains in progress, the firm said.
Augment and Kharitonin, who has not been sanctioned, could not be immediately reached for comment.