The company agreed to dispose of its JSC Mondi Syktyvkar, a pulp, packaging paper and uncoated fine paper mill situated in the capital of the Komi Republic in Russia, to Augment Investments in August 2022
Mondi scraps deal to sell its Syktyvkar facility. (Credit: Mondi)
UK-based packaging and paper company Mondi has terminated its $1.17bn agreement to sell its Syktyvkar paper mill in Russia to Augment Investments due to the lack of progress in securing approvals from Russian regulatory bodies.
The packaging firm agreed to dispose of its JSC Mondi Syktyvkar, a pulp, packaging paper and uncoated fine paper mill situated in the capital of the Komi Republic in Russia, to Augment Investments in August last year.
The deal was subjected to the approval of the Russian Federation’s Government Sub-Commission on Monitoring Foreign Investment and customary antitrust approvals.
In a statement, Mondi said: “As per the terms of the sale and purchase agreement, the disposal to Augment will therefore be terminated and will not complete.
“The Board remains committed to divest Syktyvkar and will continue to assess all alternative divestment options.”
Mondi suspended or halted operations in Russia last year as Western governments imposed sanctions in response to Moscow’s invasion of Ukraine.
Separately, the group signed a deal to sell three of its Russian packaging converting operations to Moscow-based Gotek Group for RUB1.6bn in December.
The proposed disposal of these three sites is not connected with the disposal of Syktyvkar. That deal remains in progress, the firm said.
Last month, Mondi collaborated with German skincare company Beiersdorf to develop a more sustainable release liner for the latter’s new wound care plaster range GREEN & PROTECT from Hansaplast, Elastoplast & CURITAS.
The packaging firm developed the new release liners from renewable materials using silicon created in a mass-balanced process of non-fossil compounds.