Mondi plc revealed the signing of a deal to divest its three packaging converting operations in Russia to the Gotek Group, a Russian packaging producer, for RUB 1.6 billion (€24 million).

According to the UK-based packaging and paper group, the three packaging converting operations are made up of a corrugated solutions facility and a couple of consumer flexibles plants. These manufacture a variety of packaging solutions for the domestic market in Russia, said Mondi.

The packaging and paper group expects to assume a loss of €70-80 million owing to the sale of the business.

Mondi said that the closing of the sale is subject to the Russian Government SubCommission for the Control of Foreign Investments’ approval and customary antitrust approvals. Following this, the deal is likely to close in H1 2023.

The packaging and paper producer stated: “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.”

The agreement follows the British group’s announcement in May 2022 of deciding to sell its Russian assets, having evaluated all options for its interests in Russia.

Mondi said that the sale is not associated with the proposed divestiture of Mondi Syktyvkar for which approval is pending from the Russian Federation’s Government Sub-Commission for the Control of Foreign Investments and customary antitrust authorities.

  Gotek Group, Mondi, packaging acquisition news, Packaging Industry News, Russia