Scania joins Man in transferring Russian assets to local dealer

MOSCOW. Dec 15 (Interfax) - Scania gas joined Man, also part of Volkswagen's Traton Group, in transferring the assets of its Russian subsidiary Scania Rus LLC to a local dealer of the brand, according to the Unified State Register of Legal Entities.

Truck and bus manufacturer Man on December 14 transferred the assets of its Russian subsidiary Man Truck and Bus Rus LLC to Man Truck Chelny LLC, registered in Tatarstan and the brand's official dealer of the brand in Kazan and Naberezhnye Chelny, which received control of 100% of Man's Russian office. According to the register, 100% of Man's Russian subsidiary are pledged with foreign legal entities of the Traton SE group.

The assets of Scania's Russian subsidiary were also transferred on December 14 to the ownership of a local dealer, Alfascan LLC, co-owned by Alfa Group JSC with 99% and businessman Radik Garifyanov with 1%. The Alfascan website says that the company has been operating since 2007 and, being the largest regional dealer of Scania trucks and specialized equipment, has dealerships in Izhevsk, Kazan, Naberezhnye Chelny, Perm, Ufa and Cheboksary.

Transactions to sell the Russian assets of Scania and Man, as well as those of carmaker Porsche are expected to be completed within 12 months, VW said at the end of October. Due to these planned transactions, assets totaling 543 million euros and liabilities of 206 million euros were classified as held for sale as of September 30, VW said in reporting.

Traton said in mid-September that Man and Scania would sell their dealership business in Russia to local partners. Traton said it expected to report a loss of up to 550 million euros as a result of the transactions.

Scania and Man are major players on the Russian commercial vehicle market. Together they sold more than 100,000 mid-size and large trucks in Russia in 2021 and had a combined market share of more than 12%, Avtostat Info reported.

According to SPARK-Interfax, the Russian divisions of Scania and Man boosted revenue 66% to 74 billion rubles and 19.65 to 43 billion rubles, respectively, in 2021.