Basic Element wins regulatory approval for Power Machines acquisition

28 July 2005

S.A. Holding has been granted Russian Federal Antimonopoly Service (FAS) approval to purchase an 80% stake in Power Machines on behalf of Basic Element.

Power Machines includes three St Petersburg-based power equipment manufacturing companies, including a steam turbine group used for nuclear generation.

Regulatory conditions attached to the approval are similar to those that Siemens faced when it failed in its bid for the controlling stake earlier this year, including completing defence orders, guaranteeing supplies and disclosure of information to the FAS.

More than 70% of shares in Power Machines belong to Interros, about 4% belong to Siemens and 17% belong to portfolio investors. Basic Element is now expected to start negotiations with Interros in order to acquire at least some of its holdings.




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