Kamaz doesn't expect Rosbelavto deal to be closed soon
MINSK. Nov 6 (Interfax) - The process of forming the holding company Rosbelavto based on Russian truck maker Kamaz and the Minsk Automobile Plant (MAZ) will not be completed soon, Kamaz chief executive Sergei Kogogin believes.
Kogogin said in an interview with industry magazine Vesti Kamaza that Belarus must make a "political decision" in these negotiations.
"As for possible relations with MAZ, this has more to do with politics. And we and MAZ often go down a clear path, but then this process suddenly stops at some stage, which indicates that further already some political decision needs to be made," Kogogin said.
"In general, I don't see an imminent conclusion to this process," he said, adding that agreements with the Belarusian side are still of a "cloudy nature."
He said Kamaz's position in these negotiations is based on economic rationale. "It's very difficult for me to answer for this large corporation, which is 100% owned by the state. Because we, after all, are proceeding from economic viability and business, and we have after all calculated what our alliance with MAZ will provide and to whom," Kogogin said.
Working groups have been set up by both the Belarusian and Russian parties, with the Russian group headed by Kamaz deputy CEO Akhat Urmanov. "He has quite a lot of experience, he is working very patiently with the Belarusian side," Kogogin said.
Kogogin also said that Kamaz does not know what Daimler, which earlier acquired 11% of shares in the company, thinks about the proposed deal. "Daimler can't express any opinion at the moment, because this opinion must be based on concrete agreements," he said.
However, Russian experts believe that creating Rosbelavto would result in substantial economic and financial benefits for the Russian side "thanks to the scale of production - for engines, transmissions and other components," he said. "This will enable us and MAZ to reduce investment expenditures in future."
The head of state company Russian Technologies Sergei Chemezov announced in June that he plans to appraise Kamaz's assets for the formation of a holding company with Belarus' MAZ in September 2012. Belarusian First Deputy Prime Minister Vladimir Semashko said later that based on existing asset valuations Rosbelavto would be an equal partnership. However, considering the difference in the value of assets, MAZ would contribute 75% of its shares, while Kamaz would contribute 49.9%.
In 2011, Ernst & Young conducted an appraisal of MAZ's assets, which amounted to about $800 million. However, the Belarusian authorities said this was an undervaluation as the appraiser did not take into account the production and export growth of recent years, the value of the brand and a number of other factors. Semashko said in June that following a second appraisal the valuation of MAZ's assets had increased to $1.1 billion.
The Belarusian authorities value Kamaz at $1.6 billion.
Belarusian President Alexander Lukashenko said later that if Russia is not happy with Minsk's position concerning equal ownership and management of the holding, Belarus is prepared to abandon the project.
However, in the middle of June the Belarusian president's press service said that Moscow and Minsk had reached a fundamental agreement to form the Rosbelavto holding company by merging the assets of MAZ and Kamaz on a parity basis.
The Russian authorities said later that the creation of Rosbelavto was at an advanced state.
