OREANDA-NEWS. March 01, 2012. OJSC Power Machines have closed a transaction on acquisition of 100-percent block of shares of PJSC EMAlliance from Auburn Investments Limited.

The above transaction has been approved by the Russian Federation Federal Anti-Monopoly Service, as well as by the anti-trust state boards of Serbia, Macedonia, Armenia and Ukraine.

The transaction has been closed on 14 February, 2012. The Parties’ consultants were JSC Gasprombank, Sputnik Group, Dechert Russia LLC and Freshfields Bruckhaus Deringer.

The above transaction on the acquisition of the block of shares is a natural extension of the global tendency in power engineering industry aimed at joining within one company the production of turbine and boiler equipment of thermal power plants. It will bring to the creation of the largest power equipment manufacturer in Russia. The new company can become one of the largest companies on the world power market, and can offer competitive package supplies of equipment and services for power projects of any degree of complexity.

Acquisition of PJSC EMAlliance’s shares is the next stage in the consistent implementation of the company’s strategy aimed at achieving the leadership positions among the global suppliers of the power solutions, Igor Kostin, Director General of OJSC Power Machines said. – Our strategic priorities, beside the production of power equipment, are also development of the high technologies, creation of new products and expansion of the service spectrum for power business. Amalgamation of companies, each of which is the market leader in its sphere, will considerably increase the competitive edge of the Russian manufacturer on the global power market.

Timur Avdeenko, President of PJSC EMAlliance said that for PJSC EMAlliance, the new shareholder means generally the new step in the development. The agreement with OJSC Power Machines has become an absolute priority for us, since it has allowed not just expanding the company potential, but also it has become the beginning of a totally new and highly ambitious project. Pulling the potential and resources of PJSC EMAlliance and OJSC Power Machines together means a drastic change of the situation on the global power market. This is a nascency of the new, ambitious and advanced Russian player at the global engineering stage. This is an important project for us, and for the Russian economy and industry in general”, he emphasized.

The incorporation of PJSC EMAlliance into OJSC Power Machines is a logical decision for both Parties. The integration of businesses will result in the possibility to attract additional resources for implementing larger projects. Decreasing transaction and administrative costs, procurement and logistic route optimization will lead to the product cost saving and increase in its competitiveness on the world market. In the long run, it will allow implementing large-scale projects by supplying complete equipment of the boiler and turbine islands for generating power plants. Integration of the engineering assets of PJSC EMAlliance into OJSC Power Machines will allow increasing the research-and-development level, manufacturing capabilities, and strengthening the company’s engineering competences.