The Mulliez galaxy brand has found a local buyer and is in the “final phase of negotiations” with, as a result, a signature “which could take place in the coming weeks”, revealed the French economic investigation media.
When contacted, Auchan in France as well as the Mulliez Family Association (AFM) did not wish to comment.
“Our response is always the same: we do not comment on rumors in the market,” Auchan Russia said in a statement.
230 stores, 30,000 employees
According to its website, Auchan Russia has 230 stores in the country and employs around 30,000 people.
This sale, if it goes ahead, must be authorized by the government commission responsible for the sale of Russian assets held by companies from so-called “unfriendly” countries.
Russia also strengthened its criteria regarding these operations at the beginning of October.
The discount on the sale price in relation to the value of the asset increased from 50 to 60% and the exit tax to be paid to the federal budget was increased to 35% (compared to 15% previously).
Finally, any transaction worth more than 50 billion rubles (around 480 million euros at the current rate) must be approved directly by President Vladimir Putin, in addition to the government commission.
In March 2023, the Mulliez galaxy group announced its intention to “cede control” of its activities in Russia to “local management”. He had been castigated by many Ukrainians, including President Volodymyr Zelensky, for having decided to continue practicing in Vladimir Putin’s country after the conflict in Ukraine.
At the start of the year, ELO, the holding company which notably brings together the distributor Auchan and land and real estate companies, had already sold 19 shopping malls in Russia.
10% of turnover
From an economic point of view, Russia represents “around 10% of the Auchan group’s turnover, or more than 3 billion euros”, but “cumulative sales from Russia and Ukraine, in decline of 4.2% last year, caused those of Auchan Retail as a whole to fall by 2% while the latter would have increased by 4% without the two countries,” detailed La Lettre.
Auchan is still present in Ukraine, with 43 stores, “half of which are hypermarkets”, but the Mulliezes “are also looking to exit Hungary”, where they operate 24 stores, including 19 hypermarkets for a turnover of around 1.3 billion euros, said the investigative media.
