The Insight Group completes acquisition of Russian leasing subsidiary of Deere & Co., the world's largest manufacturer of agricultural machinery and equipment.The amount of the transaction does not disclose, as Interfax reports.
Since March 7, the Insight Group has owned a 100% stake in John Deere Financial LLC, according to the data of the Russian Unified State Register of Legal Entities (EGRUL).
Since May 2022, John Deere suspended shipments of machines to Russia and Belarus.
"According to the terms of the deal, we have to rename the company, which will happen in the near future," said the representative of the Insight Group, without disclosing the new name.
The deal was discussed and approved by a subcommittee of the government commission for foreign investment control at the beginning of the year.
The Insight Group has already acquired the leasing company of one of the Western companies that left Russia due to invasion of Ukraine. The Group also completed the acquisition of the leasing company Siemens Finance (now Deltalizing) from the Siemens in last September. The Group is ready to consider the leasing assets of all outgoing foreign companies, as Avet Mirakyan, CEO of the Insight Group, said in an interview in September.
"Take a look at the list of captive leasing companies with the foreign names, so the whole list exactly matches our list of potential acquisitions. But I think that all competitors, one way or another, operate on the same list. All the car producers, and also equipment manufacturers, all of them have captive leasing subsidiaries," said Avet Mirakyan.
Revenue of the Russian subsidiary of John Deere amounted to RUB 2.7 billion ($35.6 million), net profit was RUB 0.9 billion ($11.9 million) in 2021.
