Report: Continental signed Russia divestment deal in February

Yesterday German newspaper FAZ named S8 Capital as the likely buyer of Continental’s business in Russia, including its tyre plant in Kaluga. Russian newspaper Kommersant adds further weight to the notion of a transaction involving the holding company.

In an article published today under the headline ‘Continental plays Russian lotto’ – a reference to connections S8’s Armen Sargsyan has to Russian state lotteries – Kommersant reports that Continental Global Holding Netherlands BV, owner of the Kaluga plant and Continental’s distribution network in the Russian Federation, has already signed an agreement to sell its stake in Continental Tires Rus to S8 Capital.

Kommersant claims that the agreement was signed in February, but requirements still hadn’t been fully met by the end of March. S8 Capital told the newspaper that it doesn’t comment on transactions for “confidentiality reasons” while Continental’s Russian office only noted that the company was considering various strategies in relation to its Russian assets, including a controlled exit from the market.