Russia-based private equity firm Insight Investment Group has acquired the Russian leasing arm of farm equipment maker Deere & Co, a state register of corporate entities showed.
Insight Investment Group confirmed the acquisition of John Deere Financial LLC, a subsidiary of the U.S. company, but declined to disclose the price. It said the deal had obtained approval from a Russian government commission on the control of foreign investment.
Russia has tightened rules on asset sales by investors from so-called “unfriendly” countries – those that have imposed sanctions against Moscow over its actions in Ukraine.
Those selling stakes in Russian assets may now have to do so at half price or less, the finance ministry has said, with the Russian budget potentially taking a 10% cut of any transaction.
John Deere last March suspended shipments of machines to Russia and subsequently Belarus, saying it was deeply saddened by the “significant escalation of events in Ukraine”.
The company could not immediately be reached for comment on Wednesday.
Insight has issued bonds worth more than 100 billion roubles ($1.32 billion) and said it used some of those funds to buy both John Deere Financial and a leasing arm from engineering company Siemens AG last year.
“Our goal is to build a leasing holding which will unite leasing companies with different areas of expertise,” Insight Group said. “Following this strategy, we have acquired John Deere Financial and do not exclude making other deals in this market.”
Source: Reuters.com