Alrosa and Kristall may merge
Kristall, the Russian diamond-cutting group, could be merged with Alrosa, the state-owned Russian diamond concern, Vedomosti reported. The merger was being discussed by the Russian government, the Russian-language daily cited Maxim Shkadkov, the CEO of Kristall, as saying.
The item cited Shkadkov as supporting the move, saying everyone would benefit from the merger.
Various options were being examined to carry out the merger including a recapitalisation of Alrosa by transferring the company capital of Kristall to the diamond group, the report continued citing Shkadkov as saying.
An alternative would be to transfer the diamond processing operations of Alrosa to the capital of Kristall, the item added.
The report cited a source close to Rosimushchestvo, the Russian property agency, who said that the operation had been under discussion in the agency for over a year.
Kristall has a turnover of RUB 11.9bn (USD 176m) and a net profit of RUB 15m, the report noted. At the end of 2014, Kristall estimated its capitalisation at RUB 6.3bn, the item added.
Vedomosti