Mar 20, 2023

The Russian Governmental Commission Approves Tatneft’s Purchase of Nokian Tyres’s Russian Operations

Based on the information Nokian Tyres has received from PJSC Tatneft, The Russian Governmental Commission on Monitoring Foreign Investments (the Russian Governmental Commission) has approved PJSC Tatneft’s purchase of Nokian Tyres plc’s operations in Russia. The signing of the transaction was announced on October 28, 2022.

According to the resolution of the Russian Governmental Commission, the total permissible transaction price defined by the Commission is 23,050 million ruble. The actual RUB/EUR exchange rate as determined by the Russian Central Bank on the day of payment will be applied. Based on Refinitiv 2PM CET FX benchmark exchange rate on March 13, 2023, the price approved by the Russian Governmental Commission would be EUR 286 million. The original transaction price announced on October 28, 2022 was expected to be approximately EUR 400 million, and to be affected, among other things, by net cash and working capital adjustments and changes in RUB/EUR exchange rate.

Substantial uncertainties still remain related to the transaction and the timing of it as well as the RUB/EUR exchange rate on the day of payment. The final closing of the transaction is subject to successful completion of compliance checks against the recent changes in sanctions and money transfer, among others.

Nokian Tyres will communicate on the progress of the Russia exit when and as appropriate.

Source: Nokian Tyres

Tire and Rubber Association of Canada

5409 Eglinton Ave W, Suite 208
Etobicoke, ON M9C 5K6