US Markets
GM

Russian regulator backs Hyundai purchase of GM plant in St Petersburg

Credit: REUTERS/REBECCA COOK

Russia's Anti-Monopoly Service said on Monday it had approved Hyundai's possible acquisition of a General Motors factory in St Petersburg, the Interfax news agency reported.

MOSCOW, Aug 3 (Reuters) - Russia's Anti-Monopoly Service said on Monday it had approved Hyundai's 005380.KS possible acquisition of a General Motors GM.N factory in St Petersburg, the Interfax news agency reported.

Hyundai's Russian unit confirmed last month it was discussing the acquisition of the factory, but declined to provide further details.

Russia's auto market has come under strain from the coronavirus crisis, which caused new car sales to plunge earlier this year.

The GM factory in Shushary in St Petersburg's suburbs can manufacture up to 100,000 cars a year.

It was built in 2008 but closed in 2015 as part of GM's decision to reduce its international operations.

Hyundai and partner Kia already have a factory in Russia with a manufacturing capacity of more than 200,000 vehicles per year.

The two carmakers sold more than 400,000 vehicles in Russia last year, more than Russian auto giant Avtovaz.

(Reporting by Maxim Rodionov and Gleb Stolyarov; writing by Tom Balmforth; editing by Jason Neely)

((Tom.Balmforth@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GM

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More