PRESS: Halliburton may buy 100% in Russia’s Novomet
MOSCOW, Dec 21 (PRIME) -- U.S. company Halliburton plans to buy 100% in Russian oil-submersible pump producer Novomet, Kommersant business daily reported on Wednesday citing sources from the oil sector and the government.
A petition to approve the deal has not been submitted to the Federal Antimonopoly Service yet, and it is unclear whether the government’s commission for foreign investment control has studied it, the sources told the daily. Earlier, state nanotechnology company Rusnano planned to sell its 30.76% in Novomet, but it has repeatedly delayed the auction and increased the stake’s minimum price to 9.9 billion rubles from 7.5 billion rubles.
Novomet’s management holds a controlling stake in the company, and minority stakes are owned by funds Baring Vostok and Russia Partners.
The oil market source told Kommersant that Haliburton is interested in the asset as the main trend in the sector now is investments in production. Previously, Haliburton was aimed at seismic and geological exploration, but low oil prices slashed investments in the sector. Still, the interest of Halliburton is surprising as it was hit hard by the sectorial crisis, and the company also had to pay U.S. $3.5 billion compensation after the failure of the 2016 deal with Baker Hughes, the source said.
Anton Sitnikov of Goltsblat BLP told the daily that the purchase of Novomet may not need a formal approval by an U.S. regulator, but if Novomet’s products fall under the U.S. sectorial sanctions its operation may be hindered in the future or may need adjustments in line with existing contracts.
Representatives of Rusnano and Novomet declined to comment on the matter, while Halliburton did not provide a comment.
(61.7967 rubles – U.S. $1)
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