ChelPipe, Zagorsk Pipe Plant say agree to merge assets

MOSCOW, Jul 21 (PRIME) -- Russia’s Chelyabinsk Pipe Plant (ChelPipe) and Zagorsk Pipe Plant have agreed to merge assets into an industrial and financial group, representatives of the tow companies told PRIME on Tuesday.

“At the first stage, the majority owner of ChelPipe (Andrei Komarov) and his partners will enter the shareholder equity of Zagorsk Pipe Plant and obtain a 50% stake. At the next stage industrial assets will be consolidated, and the sides are working on the terms and parameters of consolidation,” a representative of ChelPipe told PRIME.

A representative of Zagorsk Pipe Plant confirmed the fact of the agreement, but said that it was premature to talk about the merger and deadlines. “We have reached the key agreements. As of today, the working groups of representatives of both sides were created, and they are working on the volume and the plan of works,” the representative said.

ChelPipe’s representative also said that creation of the group will raise operating efficiency of businesses of the two plants, and would allow them to raise financial resources at optimal costs and improve commercial qualities of products.

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