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Minsk Automobile Factory in link-up talks with Russian company

Russkiye Mashiny (Russian Machines Co.), a holding company controlled by Russian tycoon Oleg Deripaska, is in talks about a possible link-up with Minsk Automobile Factory (MAZ), Russia's RIA Novosti reported with reference to sources close to the negotiations.

Different link-up scenarios are under discussion, the news agency said. MAZ can be transferred under the control of GAZ, a Russian truck and bus maker owned by Russkiye Mashiny, or the latter can acquire a minority stake in the Belarusian state-owned company. Specific decisions are expected to be made toward late September, according to the sources.

"We are seeing a serious synergy between the two companies and confirm our interest in the link-up," Russkiye Mashiny CEO Aleksandr Filatov was quoted as saying.

Earlier this year, MAZ was in link-up talks with Russia's KamAZ truck maker.

Speaking to reporters in June, Sergei Chemezov, director general of Russian Technologies, a state corporation that holds a 49.9-percent stake in KamAZ, revealed that the talks had stalled.

In February, Russian Technologies proposed a deal whereby KamAZ would hold 100 percent in MAZ, while the Belarusian government would receive a stake in the Russian company in exchange. The Belarusian government said, for its part, that it would like a joint holding company to have 49-percent stakes in both MAZ and KamAZ.

MAZ Director General Alyaksandr Barowski said in early March that the manufacturer was interested in a merger with another truck giant because it "cannot survive on its own."

The final decision will be made at the highest governmental level because MAZ is fully owned by the state, Mr. Barowski said. //BelaPAN