Rosspirtprom to merge with Saimaa Beverages

2011-12-29



Rosspirtprom, a 100% state-owned Russian alcohol producer, is to merge with the Finnish company Saimaa Beverages. The creation of a joint company under the name of Obyedinennyye Spirtovyye Zavody (United Spirit Plants, OSZ) has already been approved by Russia's Federal Antimonopoly Service (FAS). Along with an agreement between the companies, Rosspirtprom is to pass to the newly created company its shares in the production platforms of Peshchanoye, Arzamasspirt, Etanol (51% in each plant), as well as 27.6% in the Chugunovsky distillery. Similarly, Saimaa is also to share its alcohol assets in the newly created holding.
As a result, Rosspirtprom is to hold 51% in OSZ and the Finnish party the remainder. OSZ is expected to take up a Russian spirits market share of 5-6%.