MOSCOW, August 31 (RIA Novosti) - Russia's Anti-Monopoly Service said Friday it had allowed Cyprus-based Highstat Ltd., controlled by steel tycoon Alexei Mordashov, to buy up to 100% in heavy machinery manufacturer Power Machines [RTS: SILM].
The service also allowed billionaire Oleg Deripaska, owner of industrial holding Basic Element, to bid for up to 82% of the company's voting shares.
"The Russian Federal Anti-Monopoly Service decided to grant the petitions of Highstat Ltd. and Stephens Capital Ventures S.A. [Deripaska's offshore holding] and to issue instructions on holding actions to ensure competition until one of the companies owns 50% plus one share of Power Machines," the service said.
Deripaska and Mordashov are listed 40th and 54th respectively in Forbes Magazine's global ranking of billionaires. Deripaska, who controls aluminum giant UC RusAl, has estimated wealth of $13.3 billion, while Mordashov, owner of Severstal, is worth around $11.2 billion.
Power Machines accounts for 37% of the country's turbines, turbogenerators, hydrogenerators and electric equipment market.
The company provides engineering services, and produces, assembles, services and modernizes equipment for hydro, thermal, gas and nuclear power plants and the transportation industry. It has clients in 87 countries.
Power Machines' largest shareholders are Russian electricity giant Unified Energy System and Germany's Siemens, which hold 25% plus one share each, and Interros, the holding company for the world's largest nickel producer Norilsk Nickel, which owns 30.4%. In July, Interros and UES [RTS: EESR] said they intended to sell their stakes.
The head of UES, Anatoly Chubais, said on Friday that the deal to sell the UES stake in Power Machines should be completed soon.
The UES press service said the company would not buy 30.4% of Power Machines stock from Burbot Limited, affiliated with Interros, because the acquisition would "require UES to spend considerable financial resources over a long period."
In line with an agreement concluded by major Power Machines shareholders, key stakeholders have right of first refusal on buying each others' shares.
UES decided to sell its Power Machines stake at 5.4 rubles ($0.22) per ordinary share.
