OREANDA-NEWS. Pipe Metal Co. (TMK) of Dmitry Pumpyansky is in consolidating talks with Ukrainian Dmitry Pinchuk’s Interpipe. Should the parties finally agree, the united company will outpace Tenaris, which leads worldwide on this market. But so far, all attempts of Russia’s entrepreneurs to build the business in Ukraine have proved abortive. It was Reuters that reported yesterday about consolidating negotiations of TMK and Interpipe. TMK did neither confirm nor denied the data and Interpipe refused to comment. But a high-rank source with Interpipe said that the companies are in talks and that the matter at stake is merger rather than buyout by Russia’s company.

TMK is the initiator, said another source familiar with the progress in negotiations. In March, Dmitry Pumpyansky met with Viktor Pinchuk to discuss the deal. TMK intends to acquire one of four Russia’s or foreign pipe companies appropriating at least $2 billion for this purpose, TMK Deputy General Director Vladimir Shmatovich said some time ago as if indirectly confirming the information.

If clinched, the deal will create a new world leader with 4,2-million tons production (17 percent of the world pipe market for oil and gas industry). Today’s number one, Luxembourg Tenaris S.A., makes no more than 3,4 million tons.

The deal will expand sales markets for TMK. But, in terms of selling opportunities, it will be also very profitable for Interpipe. The latter that exports nearly 80 percent of all pipes it makes may annually sell no more than 400,000 tons in Russia till 2010.