Danone to shed Russian dairy business with 1 bln euro write-off, 14 October 2022

French food company Danone will shed control of its dairy food business in Russia in a deal that could lead to a write-off of up to 1 billion euros ($978 million), it said on Friday.

Joining a lengthening list of global companies making costly exits from Russia over the war in Ukraine, Danone will be offloading a business representing about 90% of its operations in Russia, where it will retain its infant nutrition unit.

"This is the best option to ensure long-term local business continuity," a Danone statement said, adding the Russian dairy unit accounted for about 5% of the group's net sales in the first nine months of the year.

A source close to the matter said Danone could retain a stake in the dairy business, Russia's biggest. The company did not disclose to whom the business would be transferred, while a Russian analyst identified a number of potential suitors...