The government commission may prevent Decathlon from selling the Russian business in parts

The government commission to control foreign investment may prevent the French chain of sports shops Decathlon from selling off their assets individually. This was announced by Deputy Head of the Ministry of Industry and Trade Viktor Evtukhov.

According to him, companies need to decide whether they work or leave the Russian market. Yevtukhov clarified that the piece sale of assets is possible as an exception and must comply with the logic. “Otherwise, they become like deals to cover the true goals of companies leaving the market, that is, to “sham” deals,” told Deputy Minister (quote from Izvestia).

The process of partial sale of assets will have to be suspended, Yevtukhov said, as this may indicate an attempt to circumvent the mandatory conditions for the sale of the business. “That is, to avoid a deal that takes into account the full value of the assets. So after all, you can sell all the stores – each separately – and leave the country without giving your customers a 50% discount and without paying deductions to the treasury in 10% of the amount, ”concluded Yevtukhov.

The company’s plans to sell its assets in Russia became known in January 2023 Interlocutors RBC then they said that the retailer intends to sell the entire business. Another source said that the company is ready to separately sell its real estate in the Russian Federation. Decathlon did not comment on these plans.

In the spring of 2022, there were 57 Decathlon stores in Russia. Against the backdrop of the start of Russia’s special operation in Ukraine, the chain of stores suspended deliveries to the Russian Federation, and on June 27 completely closed all stores in the country “for an indefinite period.” In August, the company began selling off inventory through the Ozon marketplace. May 2023 reportedthat the company has received government approval for the sale of several stores.