Leroy Merlin to transfer control of Russia business to local management
MOSCOW. March 24 (Interfax) - Leroy Merlin plans to transfer control of its Russia business to local management, the DIY retailer's parent company Adeo said in a press release.
The process was initiated several months ago, it said.
Transferring control should ensure that the company can operate locally and preserve the jobs of the 45,000 employees.
The transaction will be subject to approval by relevant authorities in Russia.
Leroy Merlin said in March last year that it would continue to operate in Russia.
Plans to maintain the chain's activities and even expand it were confirmed by the Russian Ministry of Industry and Trade, which oversees retail. "The chain will not only continue to operate and retain its entire staff, but also plans to open new stores. The company's performance is good, the Russian representative office of Leroy Merlin has effective management with which we have been cooperating for many years," the state secretary and Deputy Minister of Industry and Trade Viktor Evtukhov commented on the statement of the French group, according to the ministry's press service.
He noted that representatives of the Ministry of Industry and Trade "are in touch with the company." "We note that the owner, French group Adeo, made a civilized and reasonable decision to transfer assets in Russia to local management. We will follow the events and help the Russian managers resolve all emerging issues," Evtukhov said.
Leroy Merlin specializes in the sale of goods for the construction, decoration and improvements for homes, cottages and gardens. The company opened its first store in Russia in the Moscow region in 2004. It says on its website that it has 107 hypermarkets in 62 Russian cities.