Gazprom, Renova in Power Asset Merger Talks

Russian gas giant Gazprom and Renova Group, controlled by tycoon Viktor Vekselberg, may incrementally merge their power assets, Gazprom CEO Alexei Miller said on Wednesday.

“We are continuing talks and could make the first step even this year. We are now discussing possible implementation of the deal step-by-step,” Miller told reporters.

Gazprom and Renova signed a letter of intent to merge their electricity assets in July 2011. Under the deal, the companies will merge their power assets in Gazprom’s power subsidiary, Gazprom Energoholding, which will eventually be restructured and could be floated on a stock market.

Gazprom will hold no more than 75 percent minus one share in the undertaking, while Renova will get at least 25 percent plus one share.

Russia’s Federal Antimonopoly Service head Igor Artemyev has repeatedly said the merger of Gazprom’s and Renova’s power assets was undesirable from the viewpoint of anti-trust legislation, and the competition watchdog would try to structure the deal to exclude Gazprom’s controlling stake in the new power company.

 

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