MOSCOW Dec 19 Russian freight firm Globaltrans
Investment is to buy rail freight operator MMK-Trans
for $225 million cash, the latest in a series of deals in an
industry opening up to competition.
Globaltrans is buying the asset from a subsidiary of
Magnitogorsk Iron & Steel Works (MMK) and is assuming
net debt and working capital of approximately $110 million, it
said on Wednesday.
The deal also envisages signing a five-year shipping
contract to transport at least 70 percent of MMK cargoes.
Russia's freight market, previously dominated by state-owned
monopoly Russian Railways, has been liberalising, which is
Oil-to-telecoms conglomerate Sistema in September
struck a $700 million deal to buy railway freight operator
Russian investment and trading group Summa this month closed
a deal to buy transport group Fesco, which controls
over 20 percent of rail group Transcontainer, after steel
magnate Vladimir Lisin agreed a deal to buy rail cargo operator
NefteTransService agreed to buy rail operator Evraztrans
from Evraz and said it was seeking more deals.
MMK-Trans is 50 percent owned by MMK Group, 37.5 percent
owned by Globaltrans CEO Sergey Maltsev and its chairman
Alexander Eliseev and 12.5 percent owned by MMK-Trans