OREANDA-NEWS  The international cosmetics concern Avon, which announced in the first half of 2022 the termination of investments in the Russian Federation, has decided not to leave the country yet, Kommersant writes.

A large cosmetics manufacturer began preparing for sale its only company in the country, located in Naro-Fominsk, near Moscow, in April 2023. In the fall, he received real deal offers. However, in the end, the company abandoned this idea due to unwillingness to give up a stable business at a significant discount, the journalists learned.

According to them, the equipment at the Avon plant allows, in addition to cosmetics, to produce perfumes there. It is because of this, as well as the established direct sales system, that interest has arisen in buying this business in Russia, the publication points out. The article notes that foreign companies leaving the country are now forced to sell assets at a discount of up to 50 percent and, although the brand is owned by a company from Brazil, which is considered "friendly" in Russia, the deal would still have to be approved by the Board of Foreign Investment, since Avon Netherlands Holdings II is listed as the beneficiary of the Russian division.

Experts note that the Russian authorities, who are interested in the full-fledged continuation of foreign companies in the country, can support Avon's position, which has decided to remain on the market. At the same time, Mikhail Burmistrov, CEO of Infoline Analytics, doubts that the company will resume significant marketing activity in the Russian Federation in the near future.

Against the background of the transfer of the Danish Carlsberg brewing company Baltika under the management of the Federal Property Management Agency, Western corporations decided to look for buyers "with sufficient domestic political influence" and not delay the sale of the business, the media wrote earlier.