Tatneft’s purchase of Nokian Tyres ops in Russia approved

Tatneft’s purchase of Nokian Tyres ops in Russia approvedFinland-based tyre maker Nokian Tyres says it has been informed by PJSC Tatneft that the Russian government commission that monitors foreign Investments has approved PJSC Tatneft’s purchase of Nokian Tyres plc’s operations in Russia. The signing of the transaction was announced last year in October.

Nokian Tyres last year said it would sell the Russian tyre making business it opened in 20025, in response to the war in Ukraine.

According to the resolution of the commission, the total permissible transaction price defined is 23,050 million rubles or EUR286 million. The original transaction price announced in October was expected to be approximately EUR400 million, and to be affected, among other things, by net cash and working capital adjustments and changes in RUB/EUR exchange rate.

Nokian also adds, “Substantial uncertainties still remain related to the transaction and the timing of it as well as the RUB/EUR exchange rate on the day of payment.”

The final closing of the transaction is subject to successful completion of compliance checks against the recent changes in sanctions and money transfer, among others.

Nokian Tyres also adds that it will communicate on the progress of the Russia exit when and as appropriate.