Valeo exits Russian production activities: Propulsion systems sold to NPK Avtopribor

French automotive giant Valeo has inked a deal to divest its Powertrain Systems production assets in Russia to NPK Avtopribor. This latest corporate shakeup underscores Valeo’s commitment to reshaping its footprint in the global automotive market.

The completion of this high-profile transaction awaits the necessary regulatory green lights. A silver lining for the local workforce, the sale ensures job security for the 158 Russian employees currently engaged in this segment. Importantly, the sale’s financial dynamics will be neutral, yielding neither capital gains nor losses.

Adding a layer of flexibility to the deal, Valeo has negotiated a buyback clause, offering the company an option to reclaim the sold assets. This option can be activated starting from the 6th year and stretches for a decade, providing Valeo with strategic continuity in the ever-evolving automotive landscape.

Valeo’s financial records provide context for this sale: The company’s Russian sales constituted a modest fraction, less than 1% of the Group’s overall sales. Additionally, the involved assets underwent a depreciation process in 2022, amounting to 43 million euros.