Russia's Federal Antimonopoly Service dismissed the application of Chelyabinsk Electrometallurgical Integrated Plant joint-stock company (CHEMK) for the purchase of 100% of the voting shares in JSC Serov Ferro-alloy Plant, the regulatory body informed.
The competition authority emphasized that CHEMK provided wrong information regarding the purchases of chromium ore in 2012 and (presumably) in 2013.
At the same time, Russia's Federal Antimonopoly Service established that the acquisition of Serov Ferro-alloy Plant would put CHEMK and its affiliates in a dominant position in the markets of medium-carbon ferrochrome, FS45, FS70 and FS75 ferrosilicon.
JSC Serov Ferro-alloy Plant (SZF, tax number: 6632001031) is one of the largest Russian chromic ferroalloys manufacturers. The annual production output exceeds 200,000 tonnes of marketable products in demand by purchasers on the global market. The authorized capital of the company is RUB 49.9 million represented by 49,900,750 common shares at par value of 1 ruble.
According to the DataCapital information retrieval system, RAS net profit of Serov Ferro-alloy Plant for Q1 2014 grew 4.04-fold to RUB 399.218 million from RUB 98.82 million the year before. Revenue increased by 7.36% to RUB 3.138 billion from RUB 2.923 billion, sales profit 2.68-fold to RUB 429.186 million from RUB 160.035 million, pre-tax profit 3.56 times to RUB 506.562 million from RUB 142.172 million.
Chelyabinsk Electrometallurgical Integrated Plant joint-stock company (OAO CHEMK, tax number: 7447010227) is the largest domestic manufacturer of ferroalloys. It comprises over 50 structural units including 7 ferroalloy smelting shops, 6 shops for manufacturing electrode goods, 1 lime-burning shop, two slag processing shops, railway and road transport shops, a shop of networks and substations, the central factory laboratory and about 30 auxiliary shops and sites. CHEMK's principal owner is Alexander Aristov.
According to the DataCapital information retrieval system, RAS net loss of CHEMK for 2013 was RUB 1.024 billion against a profit of RUB 1.474 billion in 2012. Revenue decreased by 5.84% to RUB 29.247 billion from RUB 31.06 billion, sales profit 2.24-fold to RUB 875.938 million from RUB 1.961 billion, loss before tax was RUB 1.264 billion against a profit of RUB 2.397 billion.