French home improvement chain Leroy Merlin is transferring its business in Russia to local management, parent company ADEO announced on Friday.
ADEO began preparations for the move several months ago to comply with international regulations, a press release stated. It added that the transaction will be subject to approval by the relevant authorities in Russia.
“After more than 18 years of activity in Russia, transferring control of Leroy Merlin to the local management should preserve the jobs of the 45,000 employees and ensure that the company’s activity remains at the service of the inhabitants,” the company said.
Russia’s Ministry of Industry and Trade described Leroy Merlin’s decision as “rational” and promised to provide assistance, RIA Novosti reported.
The Leroy Merlin chain has over 100 stores in more than 60 Russian cities, and the retailer is one of the 10 largest trading companies in the country.
Source: Russia Today