Mondi has announced the termination of a $1.17 billion deal to sell its largest plant in Russia. The plant, JSC Mondi Syktyvkar, located in the Komi Republic, was intended to be sold to an investment vehicle owned by Russian billionaire Viktor Kharitonin.
The decision to scrap the deal was made due to a "lack of progress" in obtaining the necessary approvals from Russian authorities, according to Lesprom Network.
The Board remains committed to divest Syktyvkar and will continue to assess all alternative divestment options.
“The proposed disposal of the Group’s three Russian packaging converting operations to Gotek Group, as announced on 15 December 2022, is not connected with the proposed disposal of Syktyvkar. This transaction remains in progress”, Mondi says in a press statement.