The city of Moscow is selling its stake in Russia's United Confectioners.

The Auction House of the Russian Federation will hold an auction for the sale of the 26.58% stake, which is valued at RUB44.9bn (US$1.7bn), in November.

United Confectioners, primarily owned by Russian conglomerate GUTA Group, unites 18 businesses throughout Russia. It owns 15 confectionery factories in the country and sells brands like Babaevsky, RotFront and Krasny Oktyabr. The company controls around 13% of the Russian confectionery market.

Vladimir Zhukovsky, an expert at the Auction House of the Russian Federation, said: "The holding is the most attractive Russian asset in the confectionery industry. It includes enterprises that have many years of experience and a stable clientèle. These are companies whose brands are widely known, and whose products are in high demand among customers.

"The acquisition of and participation in this business is an excellent entry on to the Russian market for a new, primarily western investor. We also do not rule out an interest in this asset from Russian companies working in the confectionery industry

The sale is one of a number being planned by the city of Moscow, which recently raised RUB150bn via the sale of its shares in the Bank of Moscow, Stolichnaya Strakhovaya Kompania and Sibir Energy.