M&A January 2012

According to a report in Bloomberg dated 27 January 2012, Polyus Gold and Polymetal contemplating a potential merger of the gold miners. If they were to proceed with this plan, this would result in the establishment of the ninth largest producer of the metal globally. Polymetal is currently listed on the London Stock Exchange, where Polyus Gold has been trying to gain a listing, so far unsuccessfully. The merger would enable Polyus to gain this primary listing.

According to Kommersant (19 December 2012), ICT Group, which holds interests in Uralkali and Baltic Leasing and manages a portfolio of assets, including Polymetal, Nomos-Bank and Khanty-Mansi Bank, is establishing another rail leasing company, this time with Mitsui. The partners will each 50 per cent in the joint venture, investing initially approximately USD 100 million. …

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The EBRD announced on 12 January 2012 plans to acquire 15 per cent of pharmaceuticals distributor Katren for an estimated USD 38-60 million. The proceeds from the investment will be used to develop the distributor’s warehousing capacity and also to fund potential future acquisitions both in Russia and other CIS countries.

Katren is the third largest pharmaceuticals distributor in Russia. The Russian market accounted for 86 percent of Katren’s consolidated revenues in 2012.

As the EBRD notes in its press release on the deal, the bank has also acquired equity interests in Petrovax and the Healthy People pharmacy chain in Russia.