The French hypermarket chain Auchan has decided to exit Russia, according to La Lettre. As reported by the publication, negotiations for the sale of the business are in their final stages. Auchan Retail Russia declined to comment on "rumors" regarding the sale of the business and its exit from the Russian market.
It is noted that Auchan has two potential buyers, although their names are not disclosed. The reason for the exit is cited as the deteriorating conditions for conducting business in Russia.
A source close to the company informed the newspaper that Auchan strictly adheres to the sanctions imposed against Russia. For this reason, the retailer is not investing funds in its Russian business, which places it at a disadvantage compared to local competitors.
Vedomosti, citing its sources, stated that the retailer Lenta, part of billionaire Alexey Mordashov's Severgroup holding, is interested in acquiring the asset. The publication's source did not name the other contender, specifying that it is "non-core."
According to the source of Kommersant, Auchan is considering two scenarios for exiting the Russian market: transferring the business to local management or selling it to a large retailer.
After the onset of the armed conflict in Ukraine in 2022, Auchan remained one of the few Western companies that continued to operate in Russia. The chain's CEO, Yves Claude, explained this decision as a desire to preserve jobs and meet the food needs of the population.
Auchan plans to cease operations not only in Russia but also in Hungary. Meanwhile, its Ukrainian division will continue to operate.
Against the backdrop of military actions in Ukraine and the expansion of sanctions against Russia, foreign companies are not only suspending operations but also selling their businesses. Coca-Cola, Ikea, Starbucks, and many major players from various sectors exited the market, primarily in the early months of the conflict.
Earlier, Spot reported that the Russian factories of Xiaomi and TCL might relocate production to Kazakhstan.