the french company Schneider Electric has decided to sell its Russian subsidiary to its local managers, in addition to scoring an impact for this decision of just over 300 million euros. This has been assured by CEO of the company, Jean Pascal Tricoirewhich has also confirmed that they suspended all their new investments in Russia after the invasion of Ukraine, and that they have concluded that the sale decision they have made is the best option.
Tricoire has underlined that in the company they concluded «from the beginning that the best owners for the business would be the local leadership team. At this point, we have signed a letter of intent defining the specifications of the main conditions of that transfer, and we still have to reach a closing agreement, which will go through regulatory approvals in Russia.«.
Schneider Electric currently has about 3,500 workers in Russia and Belarus, countries in which revenues for the company of 28,900 million euros, 2% of the total, were recorded. It also operates three factories and two distribution centers in Russia. According to The Register, Tricoire assures that there are practically no exports or elements of the supply chain that they receive from Russia, and when it comes to critical components, they do not receive any from the country. And if all goes well, they hope that within 12 or 18 months they will not have any kind of contractual relationship with Russia.
The Schneider CFO Hilary Maxson, has confirmed the company’s intentions at the meeting after the publication of the company’s first quarter 2022 results, and also that they expect to have made the sale by next June. Of course, he also pointed out that predicting when it will be done is complicated, because everything indicates that getting the necessary approval to do it that the authorities are asking for is going to be complicated.
The operation, according to Maxson, is a sale of 100% of the company’s Russian entities to the management that this subsidiary currently has in the territory, and will have a financial impact on Schneider Electric’s income of about 315 million dollars. .