RUSSIA: Gazprom and SUEK to form joint venture

Gazprom, SUEK to form joint venture
Russia's Gazprom and SUEK, the country's largest coal producer, are to form a joint venture with an estimated value of $18 billion.

"The valuation of the joint venture falls between $12 billion and $18 billion, but I think it will be in the neighborhood of $14 billion to $18 billion," a source close to the deal told Reuters.

The deal, which will be completed by September, has to be approved by Russia's Federal Anti-monopoly Service (FAS).

The venture will become Russia's largest electricity holding company after the breakup of Unified Energy System (UES).

Gazprom and SUEK bought nearly a quarter of the assets sold by
Unified Energy System last year.

Before
Unified Energy System completes the sell-off of its assets by July, it must find buyers for several other power producers, giving Gazprom a chance to expand further into the sector as their main rival, EnergoPolyus, decided to scrap the power firm's creation and sell all of its electricity assets instead.

Source: PressTV
Blogalaxia: fotolog Technorati: Bitacoras:agregaX:

No comments: