Mercedes to sell stakes in Russian subsidiaries to Avtodom dealer, including local auto plant

MOSCOW. Oct 26 (Interfax) - Germany's Mercedes-Benz intends to exit the Russian market and sell its stakes in local subsidiaries to the Avtodom dealer, including the company's auto plant in the Moscow Region, the automaker's representative office in Russia said on Monday.

Specifically, stakes will be sold in JSC Mercedes-Benz RUS; Mercedes-Benz Manufacturing Rus LLC, an auto plant in the Moscow Region; Mercedes-Benz Financial Services Rus LLC; Mercedes-Benz Bank Rus LLC; and Mercedes-Benz Capital Rus LLC.

Completion of the transaction is subject to the approval of all relevant authorities, the automaker said.

"The main priorities in agreeing to the terms and conditions of the transaction were to maximize fulfilling obligations to customers from Russia in the area of after-sales service and the provision of financial services, as well as retaining the jobs of the employees of the Russian divisions of the company," JSC Mercedes-Benz Rus CEO Natalia Koroleva was quoted as saying in the company's statement.

As the new owner of the Russian divisions of Mercedes-Benz, the Avtodom dealership holding will be permitted to attract other companies as production partners in order to organize joint manufacturing at the auto plant in the Moscow Region, the press service of Russia's Industry and Trade Ministry said in a statement. The ministry plans to assist the company in selecting a partner.

"As a result of the negotiation process, we have managed to reach the final stage of agreeing on the investment deal. It is important that this ensure the plant's work performance, as well as retain highly qualified jobs and experts. I also note that after all approvals have been completed, the new owner of the Russian divisions of Mercedes-Benz, the Avtodom company, will be able to maintain and service Mercedes-Benz cars sold on the Russian market," the Industry and Trade Ministry's press service quoted Albert Karimov, Deputy Head of the Industry and Trade Ministry who oversees the auto industry, as saying.