{"id":126393,"date":"2022-04-01T14:58:33","date_gmt":"2022-04-01T14:58:33","guid":{"rendered":"https:\/\/fin2me.com\/?p=126393"},"modified":"2022-04-01T14:58:33","modified_gmt":"2022-04-01T14:58:33","slug":"auto-logistics-firm-gefco-to-buy-out-russian-shareholder","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/auto-logistics-firm-gefco-to-buy-out-russian-shareholder\/","title":{"rendered":"Auto logistics firm Gefco to buy out Russian shareholder"},"content":{"rendered":"
PARIS (Reuters) – Auto transport company Gefco, co-owned by French-Italian carmaker Stellantis, said on Friday it will buy back the 75% of its shares that are held by Russian Railways (RZD) after it was placed under western sanctions.<\/p> The buyback was planned before April 11, the company said in a statement, adding it hoped \u201cto provide more information about the evolution of our shareholder structure in the coming days\u201d.<\/p>\n Business daily Les Echos and other French media reported that French shipping group CMA CGM was set to acquire Gefco.<\/p>\n CMA CGM declined to comment.<\/p>\n Gefco, which did not explain how it would finance the buyout, said running its business had become \u201cextremely difficult due to our shareholding structure\u201d.<\/p>\n Western industrial players are seeking to cut their ties with partners in Russia, which has become increasingly isolated after invading neighbour Ukraine at the end of February.<\/p>\n The British government, in its latest round of sanctions on March 24, cited state-owned RZD, along with some defence companies and the Wagner Group, known for employing mercenaries, for aiding Russia\u2019s invasion of Ukraine.<\/p>\n Gefco said the British sanctions, as well as EU and U.S. restrictions, should not impact Gefco as an independent company registered in France.<\/p>\n Founded in 1949, Gefco employs 11,500 staff in 47 countries and sells transport services to Stellantis, Ford, Renault, Skoda and Toyota, as well as Nestle and Electrolux.<\/p>\n Until 2012, it was fully owned by France\u2019s PSA group, which last year merged with Fiat Chrysler to form Stellantis.<\/p>\n Facing pressure to cut costs, PSA in 2012 sold a 75% stake in Gefco to RZD for 800 million euros ($884.00 million).<\/p>\n Sources told Reuters last year RZD and Stellantis had put Gefco up for sale in a deal expected to be worth more than 2 billion euros. Neither owner commented.<\/p>\n Les Echos, citing sources, said the potential deal with CMA CGM would value Gefco at 450 million-500 million euros.<\/p>\n CMA CGM, one of the world\u2019s largest container shipping lines, has invested heavily in non-maritime logistics in recent years through a series of acquisitions.<\/p>\n ($1 = 0.9050 euros)<\/p>\n