FRANKFURT, Germany (AP) — Industrial conglomerate Siemens AG said Friday it has formed a strategic partnership with Russian billionaire Alexev Mordashov that aims to modernize OAO Power Machines.
Russia's ZAO Interros Holding agreed last month to sell a 30.4 percent stake in Power Machines to Mordashov, chief executive of steelmaker OAO Severstal.
The sale came after Siemens waived its pre-emptive rights to the stake, having failed to obtain an approval from Russia's antitrust watchdog to take control of the company.
Siemens' stake in Power Machines is 25 percent. Russian state-owned electricity monopoly RAO Unified Energy Systems holds a 25 percent stake, but plans to sell it in an auction by the end of the year.
By forming a partnership, Mordashov and Siemens effectively control 55 percent of Power Machines.
An earlier bid by Siemens for control of Power Machines was turned down in 2005 on security grounds. A unit of Power Machines makes turbines that power Russia's nuclear submarines.
Power Machines is expected to be a beneficiary of a surge in orders from Russia's electricity sector as it undergoes sweeping restructuring and modernization.
Shares of Siemens were up nearly 0.4 percent to 98.65 euros ($139.19) in Frankfurt.