Report: Henkel expects net financial loss from sale of Russia business
MOSCOW, Apr 21 (PRIME) -- Henkel expects to see a net financial loss in the deal to sell its Russian business, a representative told Reuters on Friday.
The consumer goods group did not disclose the amount of losses but pointed out that the currency exchange effect would play a role in the transaction.
Further details on the deal will be provided in the company's first-half earnings release in August, the representative added.
On Thursday evening, Henkel announced that it had sold its business in Russia to a consortium of local financial investors for 600 million euros (U.S. $657.54 million), as it finalizes its exit from the country.
The maker of Persil washing detergents and Pritt glue has been active in Russia for more than 30 years and most recently operated 11 production sites there.
Henkel is among many Western firms that have decided to leave Russia following its operation in Ukraine, which prompted many countries to impose sweeping sanctions.