Silovye Mashiny and OMZ call off merger

Siloviye Mashiny and United Heavy Machinery (OMZ) will soon officially announce the cancellation of their merger.

"There will not be a merger now or later," a source close to the deal said. "In several days, we will officially announce the cancellation of the merger between Siloviye Mashiny and United Heavy Machinery."

According to the source, there will be changes to OMZ's management after the cancellation of the merger is announced. "A person from OMZ's previous management will head it," the source noted.

Presently, the general director of Siloviye Mashiny, Yevgeny Yakovlev, heads OMZ.

Last December, the two companies announced plans for a merger. It was planned that the companies would concentrate on engineering, production and marketing of equipment for the power industry, including nuclear power plants. They planned to offer comprehensive solutions in building and modernizing power industry facilities.

OMZ and Siloviye Mashiny began exchanging shares on May 6, 2004, however on May 21 it became known that the exchange did not take place.

Then, it was reported that Siemens had asked the Federal Anti-Trust Service for permission to purchase 71% of Siloviye Mashiny. The service told RIA Novosti that a decision would be made before August 5.

On July 23, the Russian Interros holding company and Siemens announced the creation of a joint venture that controlled 71% of Siloviye Mashiny - Interros will possess 50% plus one share of the joint venture and Siemens will control 50% minus one share.

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Author`s name: Editorial Team