Russia's Federal Antimonopoly Service granted the application of JSC Ural Mining and Metallurgical Company regarding the purchase of 83.13% of the shares in CJSC Buribaevsky Mining and Processing Plant, and issued a related order to ensure due competition, the regulatory body informed.
According to the copper concentrate market research conducted by Russia's Federal Antimonopoly Service, the share of UMMC in this market in Russia exceeds 50%. Therefore, the acquisition of shares in the Buribaevsky Mining and Processing Plant could result in a restriction of competition in the market of copper concentrate in the Russian Federation.
The competition authority has therefore obliged UMMC to make sure all the short-term and long-term copper concentrate purchase / sale contracts effective as of the order date are duly performed. Also, UMMC shall provide equal opportunities for the conclusion of copper concentrate supply contracts to companies belonging to its group and other entities.
The order shall be effective five years after UMMC receives it.
CJSC Buribaevsky Mining and Processing Plant (Republic of Bashkortostan, tax number: 5222000882) is principally engaged in the mining and processing of copper and copper-zinc ore.
JSC Ural Mining and Metallurgical Company (UMMC, Russian: UGMK, tax number: 6606013640) unites assets of about 50 enterprises located in various regions of Russia. UMMC accounts for about 40% of the output of Russian cathode copper, zinc and about 50% of lead, a quarter of the domestic market of non-ferrous rolled products and more than a half of the European copper powder market. From year to year, UMMC increases the output and sale of almost all kinds of goods.
The shareholders of the company are: Cobargo Management Inc. (16.25%), Finmet Ag (Finmet Corp.) (19.99%), Diluk Associated S.A. (17.55%), Kaskonu Invest Corp. (16.2%), Fridingen Investments Limited (5.1%), Alpin Group AG (15%).
The company was established in 1999 by Iskandar Makhmudov together with his partners. Its authorized capital (RUB 420 million) is represented by 420 million common shares at par value of 1 ruble.
According to the DataCapital information retrieval system, RAS net loss of UMMC for January-September 2013 was RUB 461.708 million against a profit of RUB 16.353 million the year before.