Globaltrans to buy MMK-Trans for around $300 mln - report

MOSCOW Fri Dec 14, 2012 12:25am EST

MOSCOW Dec 14 (Reuters) - Russian freight operator Globaltrans Investment has won the right to buy MMK-Trans, a subsidiary of Magnitogorsk Iron & Steel Works (MMK) , the Kommersant daily said on Friday, citing several sources.

MMK owns a 50 percent in MMK-Trans, while the rest is controlled by Globatrans executives Sergei Maltsev and Alexander Eliseev, who are also set to sell their stakes, the daily said.

It added that the deal may be worth around $300 million and could be announced in the next two weeks. Globaltrans beat other companies, including NefteTransService, for MMK-Trans, which operates around 3,500 units of rolling stock.

Globaltrans is aiming to take advantage of continued liberalisation in a Russian freight market previously dominated by state-owned monopoly Russian Railways, and plans to continue its expansion through acquisitions.

According to a recent presentation by the company, over 70 percent of the country's freight rail fleet is now privately owned.

In April, the company agreed a deal to buy the railcar unit of iron ore miner Metalloinvest for $540 million and in July raised $520 million from a share sale to help to fund its expansion plans.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.