According to its parent firm ADEO, French home improvement retailer Leroy Merlin, which employs 45,000 people in Russia, plans to transfer ownership of its business operations there to local management.
The Mulliez family, which also owns the French grocery retailer Auchan and the Decathlon chain of sporting goods stores, owns Leroy Merlin. Both of these businesses are still active in Russia.
"We are starting the transfer process and have to submit the project to the relevant authorities in Russia," ADEO's head said.
"In concrete terms, our local management will initiate discussions that may last several months," he added.
Viktor Yevtukhov, Russia's deputy minister of industry and trade, called Leroy Merlin's plan to hand over assets to local administration "civilized" and "logical."
"I stress that the chain will not only continue to work and keep all staff, but also plans to open new shops," Yevtukhov said in a statement.
Financial information wasn't immediately available, and it was unable to say whether the retailer will continue using the Leroy Merlin brand because the deal is still awaiting permission from Russian authorities.
Under pressure from their consumers and governments, Western businesses including McDonald's, Starbucks, Deutsche Bank, and Shell have pulled back from Russia in an effort to punish Moscow for waging war against its neighbor.
Russia's corporate operations have been made more challenging by Western sanctions.
(Source:www.ft.com)
The Mulliez family, which also owns the French grocery retailer Auchan and the Decathlon chain of sporting goods stores, owns Leroy Merlin. Both of these businesses are still active in Russia.
"We are starting the transfer process and have to submit the project to the relevant authorities in Russia," ADEO's head said.
"In concrete terms, our local management will initiate discussions that may last several months," he added.
Viktor Yevtukhov, Russia's deputy minister of industry and trade, called Leroy Merlin's plan to hand over assets to local administration "civilized" and "logical."
"I stress that the chain will not only continue to work and keep all staff, but also plans to open new shops," Yevtukhov said in a statement.
Financial information wasn't immediately available, and it was unable to say whether the retailer will continue using the Leroy Merlin brand because the deal is still awaiting permission from Russian authorities.
Under pressure from their consumers and governments, Western businesses including McDonald's, Starbucks, Deutsche Bank, and Shell have pulled back from Russia in an effort to punish Moscow for waging war against its neighbor.
Russia's corporate operations have been made more challenging by Western sanctions.
(Source:www.ft.com)
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