Whirlpool has decided that they are to leave the Russian market and is selling its assets there to Arcelik (Beko etc in the UK) with sources citing the war in Ukraine as the reason.
Whirlpool is just one of a number of companies that are beating a path away from Russia.
What we find interesting in this is that, with the general attitude of the international community shunning Russia in almost every way it strikes us as od that Arcelik is buying up assets in Russia and obviously wishing to trade there.
However, the deal includes Whirlpool’s manufacturing site in Lipetsk, Russia, the sales organization in Moscow, and sales operations in Kazakhstan and other select Commonwealth of Independent States.
It is reported the sale is worth about $200 million but the cost to Whirlpool is said to be in the region of $3-400 million so they will incur losses in pulling out. But, that may be the smart play as new legislation in Russia allows the state to seize foreign assets so, it could be a bit risky for Arcelik unless they have some sort of guarantee that it won’t be.
