Nestle Might Struggle to Sell Russia Unit After Moscow's Administration Order
Dow Jones09-18
0555 GMT - A potential sale of Nestle's Russian operations looks more uncertain after Moscow moved to place the business under temporary administration, J.P. Morgan analysts say in a research note. The situation seems similar to what happened to Danone before the French food company ultimately sold its Russian essential dairy and plant-based unit for about 180 million euros and took a 1.2 billion-euro hit, the analysts say. For Nestle, Russia accounts for around 2% of sales and 3% of operating profit, mainly in coffee, infant formula and pet food, according to JPM's estimates. "This move throws further into question the value that could be extracted from a forced sale of the company's Russian assets," the analysts add.
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