Sistema wants to buy Goldovsky out of United Petrochemicals Co
MOSCOW. Dec 27 (Interfax) - The Russian Federal Antimonopoly Service (FAS) has granted a request by the Sistema Holding to acquire 100% voting shares in OJSC United Petrochemicals Company (UPC), the FAS said in a statement.
United Petrochemicals Company is a joint venture between Sistema's Bashneft (74.99%) and former SIBUR chief Yakov Goldovsky's Petrochemical Holding (just over 25%).
"We believe in the prospects for the petrochemicals sector and its investment potential and so we are thinking of acquiring UPC directly for Sistema to give further impetus to the company's development as a separate area for investment. But it is too soon to talk about a deal, its structure and parameters today. Clearance by the FAS is not a mandatory condition for the deal to be closed," Sistema told Interfax.
UPC aims to be ranked among the top three Russian petrochemical companies by sales volume. UPC's prospective target product portfolio consists of six of the most-used polymers - polyethylene, polypropylene, polycarbonate, polyethylene terephthalate, polyurethane, and polymethyl methacrylate - and end-products made from them - packaging, cord threads and fabrics, products for construction, organic glass, optics, and so on.
This past spring, Russia's Federal Antimonopoly Service (FAS) approved UPC's application for rights allowing it to function as the executive arm of OJSC Dzerzhinsk Orgsteklo (DOS). The FAS also gave the company permission to secure rights allowing it to carry out the same functions at LLC Korund, and Korund and DOS outfits - LLC Korund-Avto, CJSC Korund-Sistemy, LLC Korund Aktiv, CJSC Korund-Tsian, CJSC TD Korund, CJSC Simazin, CJSC Khemkor, LLC DOS-Neva, LLC MMA, and LLC DOS-Energo. The FAS also greenlighted UPC to buy 100% of LLC Korund, LLC Korund Aktiv, TD Korund, CJSC Korund-Tsian and Dzerzhinsk Orgsteklo.