On Wednesday, Mercedes-Benz (MBGn.DE) announced that its Russian assets had been approved for buyback, bringing its exit from Russia one step closer.
Last year, Mercedes sold stakes in its industrial and financial services companies to Avtodom, a Russian car dealer chain.
A government panel must approve Western companies’ exits from Russia from “unfriendly” countries that imposed sanctions. Buyback agreements allow companies to return.
Mercedes stated it would leave the market and that Avtodom had approved its subsidiary share sale.
“The transaction completion is now particularly subject to implementing the contractual agreements,” Mercedes added. “We implement quickly.
“We have an option with the buyer to buy back company shares if sanctions are lifted.”
Carmakers leaving the market after Russia sent tens of thousands of troops into Ukraine in February 2022 have preferred the repurchase clause.
Renault (RENA.PA) sold its controlling ownership in Russia’s Avtovaz for one rouble with a six-year buyback option. Nissan (7201.T) sold its Russian company to a state-owned organization for one euro.
On April 18, Avtodom acquired 100% of Mercedes-Benz Capital Rus and Mercedes-Benz Manufacturing Rus, according to the Russian company registry.
Avtodom told Interfax that government officials were working to finalize the Mercedes purchase.
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