Germany's Bosch sells some Russian assets to holding company S8 Capital

Feb 02, 2024

The Bosch logo is seen in Reutlingen, Germany, June 16, 2017. REUTERS/Michaela Rehle/File Photo

MOSCOW, April 28 (Reuters) - German technology group Bosch [RIC:RIC:ROBG.UL] on Friday said it had sold manufacturing facilities and administration at one of its sites in Russia to holding company S8 Capital, which plans to rebrand the facilities within six months.

Scores of companies have opted to exit Russia or announced plans to do so since Moscow sent tens of thousands of troops into Ukraine on Feb. 24 last year. S8 Capital previously acquired lift-maker Otis Worldwide Corp's (OTIS.N) Russian business.

S8 Capital said the Bosch deal included a 100% stake in three Bosch facilities - a spark plug factory, a power tools factory and a heating boilers production site - in the city of Engels.

"The transaction has been completed and the formal registration of the new shareholder will follow during the next days," Bosch said in a statement to Reuters. "It was agreed to keep the details of the transaction confidential."

Sanctions against Moscow have included an export ban on goods that can be used for both civilian and military purposes.

Bosch said sanctions, including at the Engels site, had interrupted most of its business with Russian customers and in Russia, or brought it to a standstill for many months.

Soon after the conflict began, Bosch said it had suspended deliveries of truck components inside Russia and to Russian customers partly because of indications its products were being used for non-civilian purposes in violation of local contracts.

Bosch, which still has two idled manufacturing sites in St Petersburg and Samara, said it expected further restrictions for its remaining business activities in Russia, up to and including their petering out.

"Tailored to each business field and location, the Bosch divisions have been examining different options for some months."

S8 Capital said the Engels workforce of around 1,000 employees would remain in place and it would reopen the plants and continue to invest in their development.

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Moscow-based reporter covering Russia's economy, markets and the country's financial, retail and technology sectors, with a particular focus on the Western corporate exodus from Russia and the domestic players eyeing opportunities as the dust settles. Before joining Reuters, Alexander worked on Sky Sports News' coverage of the 2016 Olympics in Brazil and the 2018 World Cup in Russia.