Auchan, one of the few French chains still operating in Russia, is in final negotiations to sell its Russian subsidiary to a local buyer, French media La Lettre reported on Oct. 24.
In March 2022, Auchan CEO Yves Claude told the outlet Journal du Dimanche that the company would not leave Russia despite accusations of financing the war, citing the need to keep employees and continue "feeding the populations of both Ukraine and Russia."
At the start of the full-scale invasion, Russia reportedly accounted for 10% of Auchan's global sales. Claude also noted that 30,000 people, including 40% of employees and shareholders, could lose their jobs if the company exited the market.
The holding company Mulliez, which owns Auchan, is expected to finalize the sale in the coming weeks. The buyer has not been named. Auchan will also need approval from Russian commissions.
Auchan is reportedly eager to sell as Russia's "exit tax" has increased from 10% to 15%, with the potential to reach 35%, according to La Lettre, citing RBC Russian.
Selling just the assets would bring less than 200 million euro ($216 million), but the sale of 94 hypermarkets and 138 supermarkets, including the buildings, could increase the value significantly.
Auchan, which has 43 stores in Ukraine, also remains active in the country.
Sales in Russia and Ukraine, which fell 4.2% last year, dragged down Auchan Retail’s overall performance by 2%. Without these countries, growth would have been 4%. The company posted a net loss of 378 million euro ($408 million) for the year.
French media Le Figaro reported that Auchan has struggled over the past 2.5 years due to tough competition from Russian oligarch-owned distributors.
The Kyiv Independent news desk
