FAS allows TMH to buy Wartsila out of JV
MOSCOW. May 22 (Interfax) - The Russian Federal Antimonopoly Service (FAS) met the request of CJSC TransMashHolding (TMH) about buying Finland's Wartsila's stake in the joint venture between the companies, the service said in a statement.
"The Federal Antimonopoly Service reviewed the request of CJSC TransMashHolding about obtaining the rights, which would allow them to determine the conditions of the implementation of the business activities of LLC Wartsila TMH Diesel Engine B.V. and has determined the following: that the transaction, which is the subject of the aforementioned petition, will not lead to limiting competition," said the FAS, adding that the service made the decision to grant this request.
As reported earlier, TransMashHolding plans to buy out Wartsila's stake in their JV. "In March 2014 the group made the decision to acquire 50% of the shares of Wartsila TMH Diesel Engine B.V. for cash consideration of no more than 12.5 million euro," said TMH in 2013 report to International Financial Reporting Standards.
TransMashHolding and Wartsila signed the agreement on the creation on an equal footing of a JV for the production of diesel engines that in 2012. The investment volume was planned at a level of 1.8 billion rubles.
Wartsila produces ship engines, propellers, navigation equipment and provides technical servicing for sea vessels.
TMH is Russia's largest producer of rail and subway rolling stock. It has plants in St. Petersburg, Bryansk, Penza, and the Moscow, Rostov and Tver regions. OJSC Russian Railways (RZD) and France's Alstom each own 25% plus one share in TMH, and the remaining TMH shares are owned by businessmen Iskander Makhmudov and Andrei Bokarev, as well as divisions of Transgroup.
