16 May 2023 09:42

Russian authorities approve sale of VW assets to Avilon for up to 125 mln euros - source

MOSCOW. May 16 (Interfax) - The Russian authorities have approved the sale of German automaker Volkswagen's Russian assets to a division of automobile dealer Avilon for a price of up to 125 million euros, a market source familiar with the decision of the subcommittee of the government commission for control over foreign investment told Interfax.

The Avilon company has received permission to acquire 100% of VW's Russian division Volkswagen Group Rus LLC, as well as its fully controlled entities Volkswagen Components & Services LLC, Scania Leasing LLC, Scania Finance LLC and Scania Insurance LLC, the source said.

The source said the decision was dated April 17, so on the day of the deal's approval it was worth almost 11.3 billion rubles, while at the current exchange rate the price is over 10.5 billion rubles.

If Avilon needs to purchase foreign currency on the domestic market to make the acquisition, its purchases will be limited to 50 million euros per day, the source added, citing the decision of the regulator.