‘I Don’t Want to Sell to an Oligarch’: A CEO on Exiting Russia
‘I Don’t Want to Sell to an Oligarch’: A CEO on Exiting Russia
(Bloomberg) -- It’s not easy to sell a business in Russia nowadays.
There aren’t many potential buyers. Few can travel there. More than 30 jurisdictions have sanctions on banks, individuals or companies following the invasion of Ukraine. And the Russians who have the means aren’t the most desirable buyers, said the head of Emerson Electric Co., which announced Wednesday that it would divest its Metran Industrial Group unit based in Chelyabinsk.
“Look, I don’t want to sell the business to an oligarch. I don’t want to sell it to the Russian government,” Chief Executive Officer Lal Karsanbhai said in a telephone interview. “Our preference would be to sell it to our management team and employees in Russia.”
The situation highlights the difficulty many companies are facing as they pause, end or unload operations in Russia amid a global outcry over the country’s actions toward Ukraine.
Emerson is leaning on international consulting and law firms, including Ernst & Young and Baker McKenzie, that are still operating in Russia, he said. It could take as long as nine months to get the deal done for Metran, which makes measurement instruments and control systems. While it’s not clear what the business could fetch in a sale, it accounts for about 1% to 1.5% of Emerson’s sales, Karsanbhai said, suggesting as much as $275 million annually.
The CEO pointed to competitor Schneider Electric SE as an example, which in April announced it plans to transfer its Russia unit to local management.
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