Euroset to restructure into a single company
The new owners of Russian mobile phone retailer Euroset have decided to completely restructure the company's operations, according to local reports. The retailer has applied to the Federal Anti-Monopoly Service (FAS) for approval to absorb 50 subsidiaries into Euroset OPT over the next six months. Euroset's management team expects that restructuring will cut costs (including taxes) by 20-25%, although it has not named a specific figure for these cost savings. Euroset said its new structure will make its operations more transparent for potential investors and, if approved, will be in place within six months. Practically all large Russian retailers use a business structure consisting of numerous companies, in the interest of keeping companies under the jurisdiction of regional inspection bodies. It also allows companies to spread their risks.
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