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Nokian Tires sells its Russian business to Tatneft

Tire manufacturer Nokian Tires
©Shutterstock/Fotodom

Finnish tire manufacturer Nokian Tires has decided to sell its Russian division to oil company Tatneft. The approximate amount of the transaction is €400 million.

The final purchase price is affected, among other things, by changes in the ruble and euro exchange rates, as well as adjustments to net assets and working capital, said in a Nokian Tires press release.

The deal must be approved by the relevant regulatory authorities in Russia. Also, other factors influence its conclusion, which creates uncertainty regarding the conditions and terms.

Once the deal is closed, Nokian Tires will cease operations in Russia and the company’s staff will be taken over by a new owner.

The fact that Nokian Tires has begun searching for applicants for its Russian business, the media reported in August. It was about the plant, which is located in Vsevolozhsk in the Leningrad region.

Nokian Tires has been operating in Russia since 2005. Last year, about 80% of the company’s tires for passenger cars were produced in the Russian Federation. It is noted that leaving the country will significantly affect the financial results of Nokian Tires.

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