1G·

Nestlé Faces the Risk of Losing Its Business in Russia

After all, management had years to divest itself of the business.

https://www.cash.ch/news/presse-nestle-droht-verlust-des-russland-geschafts-961577

3 Commenti

But why would they do that? Switzerland isn't in the EU. Switzerland imposes sanctions on Russia AND Ukraine, but not on its own corporations or citizens.

•

CaYaRo@CaYaRo

@Soprano Because the risk of government administration followed by a forced sale is no longer reasonably proportionate to the return (2% of revenue). And as the war drags on, such scenarios are becoming increasingly likely.
There have been precedents for this at Carlsberg, Heineken, Danone, etc.

•

Soprano@Soprano

@CaYaRo But that’s complete nonsense, because if the probability of a forced sale is estimated to be correspondingly high, then the value of the sale on the open market also approaches 0 asymptotically.

It’s an illusion to believe that you can prevent an asset from losing value by selling it early. Because if you see the devaluation coming, so does everyone else—and the loss in value is already priced in.

Apart from that, I’d put a big question mark on just how seriously such a report can be taken at all. The fact that a domestic competitor wishes for the downfall of a foreign company isn’t really newsworthy in the first place. Russia’s political leadership would have little to gain from this, at any rate. They’ll think long and hard about whether it even makes sense to sanction a country like Switzerland—which isn’t openly hostile—if doing so causes foreign investor confidence to plummet even further.

•