French multinational food-products company Danone on Friday said it has decided to initiate a process to transfer the effective control of its essential dairy and plant-based (EDP) business in Russia.
The transaction could result in a write-off of up to EUR 1 billion, it said in a statement.
"Danone considers that this is the best option to ensure long-term local business continuity, for its employees, consumers and partners," the statement said.
Over the first nine months of 2022, the essential dairy and plant-based business in Russia represented around 5 per cent of Danone net sales.
"Once closed, the transaction, which will be subject to regulatory approvals, will result in the deconsolidation of Danone's EDP Russia business."
Danone's priority, the statement said, remains to "act responsibly and respectfully" to its local employees, consumers, and partners throughout the process.
Danone is a leading global food and beverage company operating in three health-focused, fast-growing and on-trend categories: Essential Dairy & Plant-Based products, Waters and Specialized Nutrition.
With 100,000 employees and products sold in over 120 markets, Danone generated Euro 24.2 billion in sales in 2021
( With inputs from ANI )
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