Japanese tire manufacturer Bridgestone has managed to get rid of its Russian business
Putin's commission has approved the sale of the Japanese unit to local businessman Sarkisian
Bridgestone, one of the world's largest automotive tire manufacturers, has announced the sale of its Ulyanovsk plant to the Russian group S8 Capital, which has previously bought up Russian operations of Otis, Bosch and Continental (often for much less than market value).
The amount of the deal was not disclosed, but Bridgestone said in a statement to AFP that the purchase had received "all regulatory approvals, including from the government commission."
The Commission for the Control of Foreign Investment in Russia, established by the President of Russia on March 6, 2022, 11 days after the outbreak of the war, is known for scrutinizing all sales of businesses of Western companies that have decided to leave Russia and often refuses when it is not satisfied with the buyers or the terms of the sale.
The commission makes sure that assets are sold at a discount of at least 50% to market value, and the seller also pays a 15% tax on the market value of the property.
S8 Capital, owned by Russian businessman Armen Sargsyan, managed to get its acquisitions approved.
Bridgestone had a plant in Ulyanovsk and a sales office in Moscow, employing about 1,000 people. Russia accounted for less than 2% of the company's revenue, the statement said. S8 will not receive any brands or trademarks.
Bridgestone stopped investing in Russia in March 2022, suspended all production activities and announced that it would sell its business in the country.
Background. It has also become known that the Finnish manufacturer of elevators and escalators Kone has left the Russian market.
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