Portugal Colonial - Auchan's Russia unit dismisses sale rumours

Although operation of the chain's 230 stores in Russia was transferred to local management in 2023, Auchan is one of the few French firms to remain in the country.

"Rumours of a sale of Auchan Russia and its leaving the Russian market have recently multiplied and we have repeatedly denied them," the subsidiary said in a statement sent to AFP.

"Our response is always the same: we don't comment on market rumours and we are continuing to work for the good of the country's population."

French business journal La Lettre reported on Monday that Auchan had rejected an offer.

The journal had reported in late October that negotiations were underway with a local buyer for the Russian stores, which employ some 30,000 people.

Many Western companies have quit the Russian market since Moscow launched in February 2022 invasion of Ukraine, but some have found it difficult to sell their operations.

The continued operation of Auchan and hardware chain Leroy Merlin, both of which are owned by France's Mulliez family, has drawn the ire of many Ukrainians, including President Volodymyr Zelensky.

Auchan Russia's latest information on its results date to the first half of 2024, when it reported a drop in sales volume but an increase in revenue due to strong inflation in the country.

H.Portela--PC