Russian Railways Acquires Transmashholding

On 24 May Russian state-owned railway operator, Russian Railways (RZD), announced the acquisition of a blocking stake in Transmashholding (TMH). According to RZD CEO Vladimir Yakunin the total value of TMH is USD 2 bln. RZD also wants to sign long-term contract with TMH (by 2015) for equipment. TMH’s subsidiary, Bryansk Heavy Machinery, bought 76% of Luhanskteplovoz (LTPL: BUY) at a tender on March 23. Inna Perepelytsya: The acquisition of equipment suppliers’ blocking stakes has became a tradition for Russian infrastructure monopolies: in the year 2005, 25% of electricity equipment producer Power Machines was acquired by RAO UES. The long-term contract with RZD will secure order stability for all TMH subsidiaries, including Luhanskteplovoz.