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Elcoteq Halts Sale of Russian Unit to Flextronics |
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Written by Chelsey Drysdale
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Thursday, 26 June 2008 |
HELSINKI – A deal to purchase Elcoteq’s subsidiary in Russia fell through after Flextronics failed to obtain approval from Russian competition authorities.
In May, a Russian paper reported Flextronics had failed to provide data about its beneficiaries. "As these conditions were not met by the deadline stated in the agreement, Flextronics decided to use its right to terminate the transaction," Elcoteq said in a statement.
As part of the original agreement, Flextronics has given Elcoteq a nonrefundable payment of 1 million euros ($1.56 million).
Elcoteq agreed to sell its troubled ZAO Elcoteq subsidiary in St. Petersburg to Flextronics in February as part of a broad restructuring plan.
Elcoteq is in talks with other parties to purchase the plant. |
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