Vladimir Putin cancelled the transfer of Danone assets to temporary management by Rosimushchestvo.

President Vladimir Putin canceled the transfer of assets of the French company Danone to temporary management by Rosimushchestvo in Russia. The reasons for this decision were not announced. According to the amendments made to the decision of 2023, 83 billion common shares of "Danone Russia" and 85,000 common shares of "Danone Russia" were transferred to Rosimushchestvo. Then "Danone Russia" was headed by Yakub Zakriev. Shortly thereafter, "Danone Russia" and "Danone Trade" were renamed "H&H" and "H&H Trade," respectively.

According to Artem Belov, the CEO of Soyuzmoloko, it is assumed that this is related to the search for a buyer for Danone's assets. Alexey Gruzdev, the CEO of Streda Consulting, also believes that the repeal of the decree may be related to an upcoming deal. According to an industry source, withdrawing assets from Rosimushchestvo's management may indicate their subsequent sale. Financial Times previously reported that Rosimushchestvo plans to sell Danone's assets to the company "Vamin" from Tatarstan. According to the newspaper, "Vamin" is owned by Mintimer Minigazov, who became a member of the board of directors of "H&H" after it was headed by Yakub Zakriev.

 

"Vamin" specializes in the production of cheese, butter, whey, and powdered milk. The company's production capacity in 2020 was 600 tons of raw materials and 100 tons of finished products per day. The company also owns its own livestock complexes and fishery.

According to Financial Times, Airat Mukhamadeev, the director of the recently established company "Vamin," sent a letter to the head of the Ministry of Agriculture Dmitry Patrushev. In the letter, Mukhamadeev expressed readiness to pay 17.7 billion rubles ($191.5 million) for control over Danone's Russian business. It is noted that 7.7 billion rubles are intended to service the debt of the Russian structure.

Mukhamadeev claims that the proposed deal price represents a 56% discount to the market value of the business. He also reports that Danone has agreed to support the business until the end of July 2024 to ensure continuity of operations and product quality for consumers. Two sources confirm the information about the French group's intention to sell the business to the company "Vamin." The deal needs to be approved by the Ministry of Agriculture and a governmental subcommittee.

Gruzdev believes that the impact of the deal on the market may depend on changes in the company's structure and management. One industry insider believes that changing ownership will not affect the market as it does not impact production balances. He also believes that Rosimushchestvo may sell Danone's assets to several buyers, including "Vamin." If the deal goes through, "Vamin" will acquire one of the best dairy assets in the country with high-quality equipment, brands, and a professional team.