Mercedes-Benz exits Russian market with buyback option

Industry:    2023-04-27

Mercedes-Benz said it had completed its exit from the Russian market, selling shares in its Russian subsidiaries to local investor Avtodom but with a buyback option to keep doors open for a possible return.

Mercedes-Benz had agreed last year to sell the shares to Avtodom, a Russian car dealer chain, but was awaiting government approval required for deals to leave Russia by Western companies from so-called unfriendly countries – those that imposed sanctions against Russia.

Russia’s Industry and Trade Minister Denis Manturov was cited by RIA news earlier on Wednesday as saying the company had six years to exercise an option to buy back its shares at market price.

Mercedes-Benz confirmed it had agreed a time-limited repurchase option, but did not disclose the timeframe.

Avtodom said on Tuesday that it had closed a deal to buy Mercedes’ Russian assets, including a plant in the Moscow region with a capacity of 20,000 cars a year, and would soon disclose its plans for resuming production.

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