The Russian Federal Antimonopoly Service has refused for a second time to allow Siemens to buy 30.4% of the stock in Power Machines from the Interros Holding.
Siemens is thus prevented from reselling the shares to Oleg Deripaska’s Russian Machines, but Interros is free to sell them to Severstal owner Alexey Mordashov. The Federal Antimonopoly Service pointed out that, by upgrading its blocking share in Power Machines to a controlling share, and considering its own activities, Siemens would gain a dominating position on the Russian electricity generating equipment. Siemens controls about 15% of that market, and Power Machines about 37%.
FAS chairman Igor Artemyev was aware of Siemens’ negotiations with Russian Machines for the resale of the 30.4% Power Machines stock package. Sources have been unable to explain the reason for the agency’s decision to reject the deal, which, the sources say, was made at the last minute. Now Interros can sell the stake to Mordashov, as it agreed to do this summer. It was required to offer the package to the two other shareholders in the company, RAO UES of Russia and Siemens, first. RAO passed on the package and decided that it would sell its own share at auction before the end of the year. Mordashov’s Highstat Ltd. already has FAS permission to buy 100% of Power Machines and the deal is expected to be completed within days.
Hope is not lost for Russian Machines, however. It can participate in the auction for the RAO share in the company. If it purchases that blocking package, it can consolidate its position with Siemens, even forming a joint venture with it, and receive control over the company. Mordashev could also win the auction for the RAO share, of course. (kommersant.com)