Russia’s FAS approves TMK’s acquisition of SMS Demag’s shares in JV

The Russian Federal Antimonopoly Service (FAS) has given the go-ahead to Seversky Tube Works (STZ), a subsidiary of Russian pipe producer TMK Group (TMK), to acquire the remaining 49 percent share in its joint venture (JV) TMK-SMS Metallurgical Services with German plantmaker SMS Demag (currently SMS Siemag), noting that the transaction in question takes place within the group and will not lead to restriction of competition.
 
Following the acquisition of SMS Demag's 49 percent stake in TMK-SMS Metallurgical Services, the share of STZ in the joint venture will increase to 100 percent. The cost of the transaction has not been disclosed.
 
TMK-SMS Metallurgical Services JV was set up in December 2007, to provide STZ with maintenance scheduling, analysis and monitoring services and the means to implement SMS Demag's expertise and technologies related to steelmaking equipment maintenance.
 
According to Russian newspaper Kommersant, the Russian office of SMS Demag has confirmed the negotiations with TMK on a possible withdrawal from the project, but noted that TMK hurried the announcement of its plans to purchase the shares of its German partner.