French DIY retailer Leroy Merlin, which has 45,000 employees in Russia, plans to hand over its operations in the country to the local management of a subsidiary, parent company ADEO said on Friday.
Leroy Merlin is owned by the Mulier family, which is also behind French sporting goods chain Decathlon and grocery retailer Auchan, both of which continue to operate in Russia.
“We are starting the transfer process and we need to submit the project to the relevant authorities in Russia,” said the head of ADEO. “Specifically, our local leadership will initiate a discussion that may last several months,” he added.
As the transaction is subject to approval by Russian authorities, financial details are not yet available and it is not possible to say whether the retailer will continue to operate under the Leroy Merlin brand, the spokeswoman said.
The announcement came as Western firms, from McDonald’s and Starbucks to Deutsche Bank and Shell, pulled out of Russia under pressure from clients and their governments to impose an economic price on Moscow for its war against its neighbor. Western sanctions against Russia have also made it difficult to do business in the country.
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Source: Hot News
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