Moscow's okay needed before GPI takeover of National Container Company
LONDON-LISTED Global Ports Investments' (GPI) planned takeover of Russia's second largest container terminal operator, National Container Company (NCC), must be approved by competition authorities in Russia, Ukraine and Cyprus.
Russia's Federal Antimonopoly Service (FAS) spokesman said reviews are under way and would take a month or more.
As a foreign shareholder, Maersk's APM Terminals, holds 25 per cent of Global Ports, the takeover must be approved by Russia's Control Commission, reports Hong Kong's Asia Times.
The announced takeover of NCC will give GPI control of 72 per cent of container volume in Russia's west, including the Black and Baltic Seas and 82 per cent of Russian box volume in the northwest, from the Gulf of Finland to the Arctic.
Moscow maritime expert Alexei Bezborodov said a GPI takeover would result in a monopoly over 1.7 - 1.8 million TEU a year. Russia's total box market is estimated at 3.5 million TEU with the Russian Far East generating one million TEU.
The Federal Antimonopoly Service (FAS), headed by Igor Artemyev, is the regulator in charge of the competition review. It is also the staffing agency for the Control Commission.
Mr Artemyev has a record of putting his finger up to test which way the Kremlin wind is blowing on such deals. For the time being his finger is invisible - he is saying nothing.
The announced deal terms provide the NCC sellers with US$291 million in cash, and they will be able to start selling their 18 per cent - now worth $310 million - after a six-month lockup, with APM in pole position to buy.
Counting NCC's $916 million in debt which Global Ports is taking on, the deal is costing $1.6 billion. The Ukrainian container terminal at Ilyichevsk can be sold separately over the next three years.
LONDON-LISTED Global Ports Investments' (GPI) planned takeover of Russia's second largest container terminal operator, National Container Company (NCC), must be approved by competition authorities in Russia, Ukraine and Cyprus.
Russia's Federal Antimonopoly Service (FAS) spokesman said reviews are under way and would take a month or more.
As a foreign shareholder, Maersk's APM Terminals, holds 25 per cent of Global Ports, the takeover must be approved by Russia's Control Commission, reports Hong Kong's Asia Times.
The announced takeover of NCC will give GPI control of 72 per cent of container volume in Russia's west, including the Black and Baltic Seas and 82 per cent of Russian box volume in the northwest, from the Gulf of Finland to the Arctic.
Moscow maritime expert Alexei Bezborodov said a GPI takeover would result in a monopoly over 1.7 - 1.8 million TEU a year. Russia's total box market is estimated at 3.5 million TEU with the Russian Far East generating one million TEU.
The Federal Antimonopoly Service (FAS), headed by Igor Artemyev, is the regulator in charge of the competition review. It is also the staffing agency for the Control Commission.
Mr Artemyev has a record of putting his finger up to test which way the Kremlin wind is blowing on such deals. For the time being his finger is invisible - he is saying nothing.
The announced deal terms provide the NCC sellers with US$291 million in cash, and they will be able to start selling their 18 per cent - now worth $310 million - after a six-month lockup, with APM in pole position to buy.
Counting NCC's $916 million in debt which Global Ports is taking on, the deal is costing $1.6 billion. The Ukrainian container terminal at Ilyichevsk can be sold separately over the next three years.