One of Russia’s most successful private entrepreneurs sells–to the state

One of Russia’s most successful private entrepreneurs sells–to the state


IN THE Russian business community Sergei Galitsky served as a rare example of a self-made billionaire who rose with relatively little state help and outside the natural-resources trade. He built his retail company, Magnit, from scratch into Russia’s largest network; it has more than 16,000 stores. Rather than moving to Moscow, he kept his headquarters in his hometown of Krasnodar, where he also founded a football club. On February 16th he made a telling exit, announcing he would sell nearly all of his shares in Magnit—29.1%—to VTB, a state bank.

That Mr Galitsky (pictured, above) decided to sell is the result of a tough business cycle and some strategic mistakes. More remarkable is that he found a buyer not on the domestic private markets, or from among foreign investors. Selling to a pubic-sector bank reflects the growing role of the state in the Russian economy. Russia’s federal anti-monopoly service puts its share at 70%. Yet the retail sector had largely been insulated from the trend….Continue reading



Source link

Advertisements

NBN Editorial Team

NBN's team of Field Producers, Editorial Staff & Contributors create & produce original content for distribution. NBN is located in Beautiful Tampa Bay with Mobile Units Serving Miami, Orlando and Fort Myers.

Have Something to Say? Do so with respect :-)

Create Account



Log In Your Account