The FINANCIAL -- Russia's largest truck maker KamAZ and Belarus' state-run Minsk Automobile Plant may merge in a holding company by contributing 49% of each company's shares to the new firm, Belarusian First Deputy Prime Minister Vladimir Semashko said on February 16, according to RIA Novosti.
"It won't be a sale of MAZ's shares, we will transfer a certain stake on a parity basis. Belarus will contribute shares worth $1 billion, Russia should do the same," Semashko told reporters.
"We will give 49% of MAZ, for example, no more than that. The Russian side should transfer the same amount, while shares of other enterprises will supplement this ...billion," he said, adding that an independent international appraiser would be chosen to value of the Russian and Belarusian companies.
Belarus' Minsk Motor Plant, the Borisov automotive and tractor electrical equipment (BATE) plant, tyre producer Belshina and Russia's Tutayev Motor Plant may join the holding company, Semashko said.
Sergei Chemezov, head of Russian Technologies state corporation, which owns 25% of KamAZ, said on Tuesday that the corporation proposed merging the two large automakers in a holding company.
Chemezov also said that Belarus was unlikely to have a blocking stake in KamAZ. That stake would depend on MAZ's value, which has not yet been established.
The Belarus State Property Management Committee has said that MAZ is valued at $2.5 billion.
KamAZ General Director Sergei Kogogin said the company expected to increase production of engines, gearboxes and axles after a merger with MAZ.