Mondi plc recently confirmed that it has entered into an agreement to sell its three Russian packaging converting operations to the Gotek Group for around €24 million, subject to approval from Russian authorities.
Moscow-based the Gotek Group is a leading Russian packaging producer, and it employs about 2,200 employees across its business, Mondi says in a news release. Its three packaging converting operations comprise a corrugated solutions plant and two consumer flexibles plants that produce a range of packaging solutions for the domestic Russian market.
The deal is expected to lead to a loss in the range of €70-80 million, Mondi says. It is conditional on the approval of the Russian Federation’s Government Commission for the Control of Foreign Investments and customary antitrust approvals. It is expected to be completed in the first half of 2023.
“However, as the disposal is being undertaken in an evolving political and regulatory environment, there can be no certainty as to when the disposal will be completed,” says the company, which is a global leader in packaging and paper, in a news release. It is based in the UK and Austria.
The proposed deal follows Mondi’s announcement in May that it had decided to divest its Russian assets. The agreement is not affiliated with the proposed disposal of Mondi Syktyvkar, which still needs the approval of Russian authorities.