Valeo announces sale of Russian thermal systems business to NPK Avtopribor
Reuters
Published Oct 31, 2023 17:58
(Reuters) - French car parts maker Valeo (EPA:VLOF) said on Tuesday it had signed an agreement to sell its thermal systems production assets in Russia to NPK Avtopribor for an undisclosed sum.
Valeo said in a statement the sale would not incur any capital gain or loss and the transaction's completion was subject to regulatory approvals.
This will "enable the 123 Russian employees in this business to keep their jobs," the company added. Valeo will also have a buyback option for 10 years, which can be activated from the sixth year.
The company has said sales in Russia previously represented less than 1% of group turnover, and the assets being sold were depreciated in 2022 for 43 million euros ($47 million).
Valeo said it was in advanced talks to sell the business in early September. In August, it sold its transmission systems business in Russia to NPK Avtopribor.
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Written By: Reuters
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