French DIY retailer Leroy Merlin to transfer ownership of Russian business to management

"In concrete terms, our local management will initiate discussions that may last several months," he added. As the transaction is subject to Russian authorities' approval, financial details were not immediately available and it was not possible to say whether the retailer would keep operating under the Leroy Merlin brand, a spokeswoman said.

French DIY retailer Leroy Merlin, which employs 45,000 people in Russia, intends to hand over ownership of operations in the country to local management, its parent company ADEO said on Friday. Leroy Merlin is owned by the Mulliez family, which is also behind French sporting goods chain Decathlon and food retailer Auchan, both of which continue to operate in Russia.

"We are starting the transfer process and have to submit the project to the relevant authorities in Russia," ADEO's head said. "In concrete terms, our local management will initiate discussions that may last several months," he added.

As the transaction is subject to Russian authorities' approval, financial details were not immediately available and it was not possible to say whether the retailer would keep operating under the Leroy Merlin brand, a spokeswoman said. Western companies from McDonald's and Starbucks to Deutsche Bank and Shell have stepped back from Russia, under pressure from customers and their governments to inflict an economic price on Moscow for waging war on its neighbour.

Western sanctions on Russia have also complicated doing business there.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)