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Government commission greenlights Nokian Tyres’ assets purchase by Tatneft

It is reported that on the basis of the benchmark exchange rate of March 13, the price approved by the Russian Governmental Commission would be EUR 286 million

MOSCOW, March 14. /TASS/. The Russian government commission on control over foreign investments has approved the acquisition of Russian assets of Nokian Tyres by Tatneft, the Finnish company said on Tuesday.

According to the resolution of the Russian government commission, "the total permissible transaction price defined by the Commission is 23,050 million ruble ($306.4 mln). The actual RUB/EUR exchange rate as determined by the Russian Central Bank on the day of payment will be applied," Nokian said the price approved by the Russian Governmental Commission would be EUR 286 million. The original transaction price announced on October 28, 2022 was expected to be approximately EUR 400 million, and to be affected, among other things, by net cash and working capital adjustments and changes in RUB/EUR exchange rate.

On the basis of the benchmark exchange rate of March 13, "the price approved by the Russian Governmental Commission would be EUR 286 million. The original transaction price announced on October 28, 2022 was expected to be approximately EUR 400 million, and to be affected, among other things, by net cash and working capital adjustments and changes in RUB/EUR exchange rate," the company added.

"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 informed.

The company made the decision to leave the Russian market last June.