Henkel spins off its Russia business

(Reuters) – Germany’s Henkel said on Friday it has spun off its Russia business after the chemical and consumer goods company had announced its exit from the country earlier this year.

Henkel’s Russian operation will change its name to Lab Industries from January and will act independently of the German group, a Henkel spokesperson said, confirming a report from Russia’s Itar-Tass agency.

“In preparation for the announced sale, it must be ensured that the local business can operate independently of Henkel’s global business processes and systems,” the spokesman added.

In October, the company’s Chief Executive Carsten Knobel said there were numerous bidders interested in the business, adding that the withdrawal from Russia would be finalised by the end of the year.

The maker of Persil washing detergents and Pritt glue had been active in Russia for more than 30 years and most recently operated eleven production sites there.

(Reporting by Matthias Inverardi, writing by Bartosz Dabrowski in Gdansk, editing by Louise Heavens)