Nokian Tires initially agreed on a business transaction in October last year.
Tire manufacturer Nokian Tires says that it has received in its bank account a purchase price of around 285 million euros for the sale of its Russian operations.
The company initially agreed in October of last year to sell its Russian operations to the Russian oil and gas company Tatneft for an estimated 400 million euros at the time.
On Tuesday, the Russian government’s foreign investment monitoring commission granted Tatneft permission to buy the Russian operations of Nokian Tires for approximately 23.1 billion rubles, or approximately 286 million euros.
According to Nokian Tires, the final formation of the purchase price was influenced, among other things, by cash reserves and the amount of working capital, as well as changes in the exchange rate between the ruble and the euro.
“The withdrawal process has been long, but we are satisfied that the process is nearing its end”, says the CEO of Nokian Tires Jukka Moisio in the bulletin.
Nokian Renkaat will finalize the deal after the registration formalities in Russia. After that, Nokian Tires’ operations in Russia will end.
Nokian Renkaat announced in June of last year that it would begin a “controlled” withdrawal from Russia.
Nokian Tires has been operating in Russia since 2005, and its largest factory has been located in St. Petersburg. Last year, about 80 percent of the company’s passenger car tires were manufactured in Russia, and about 20 percent of its turnover came from Russia and Asia.
Nokian Tires will announce the final financial effects of the acquisition when it publishes the January-March interim report on April 25.
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