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Industry Ministry: No agreement on Gomselmash and Rostselmash merger yet

MINSK, 25 January (BelTA) – Belarus and Russia have not yet reached an agreement on the merger of Gomselmash and Rostselmash into the holding company Rosbelkom, BelTA has learnt from the press service of the Industry Ministry of Belarus.

The issues regarding the Gomselmash-Rostselmash alliance were discussed on several occasions in 2012, the ministry noted. Gomselmash’s executives held talks with the shareholders of Rostselmash and the board of the Novoye Sodruzhestvo Industrial Group (Russia), which controls Rostselmash. The Russian side was invited to create the holding company Rosbelkom under the 50/50 terms and was handed over a draft statute for the merged company. No feedback followed.

The Belarusian side proposed the Novoye Sodruzhestvo Industrial Group to consider a possibility of selling a controlling stake of the combine harvester facility of Rostselmash “if the Russian side finds the merger terms previously proposed as unacceptable", the ministry said. But there was no response either.

In December 2012, the Council of Ministers held a meeting with Gomselmash executives and representatives of the Novoye Sodruzhestvo Industrial Group. "The sides exchanged views on further possible cooperation between Gomselmash and Rostselmash but no specific arrangements were achieved," said the ministry.

The manufacturing corporation Gomselmash was founded in 1978. It stemmed from the Gomselmash factory that was established in 1930. The company operates 9 plants. As a major manufacturer of agricultural machines in the CIS states and Europe, Gomselmash offers self-propelled and trailed forage harvesters and crushing mowing machines, grain harvesters, mounted mowers, potato and beet harvesters. The company produces more than 40 basic types of various agricultural machines under the Palesse brand. Rostselmash is a Russian manufacturer of combine harvesters. It is the largest in the south of Russia. The company accounts for 65% of the Russian market of agricultural machinery.