Mostotrest buys into rival infrastructure builders
By Chris Sleight01 June 2010
Russian infrastructure builder Mostotrest has acquired a stakes in two domestic rivals with total revenues of US$ 2 billion. The company says the acquisitions will increase its geographic reach at home.
It has bought a 50% stake in Inzhtransstroy, an infrastructure designer and contractor with annual revenues of RUR 49.9 billion (US$ 1.61 billion). The company's current projects include a number of key strategic projects including airport reconstruction in Moscow (Sheremetyevo), Sochi, Vladivostok, the development of Sochi's Rosa Khutor ski resort and the Ust Luga sea port near St Petersburg.
It has also bought a 50.1% stake in Transstroymekhanisatsia, a paving contractor that focuses on the road and airport sectors and has its own asphalt, concrete and cement production facilities. The company had revenues or RUR 12.9 billion (US$ 417 million) last year.
The company is involved in the airport and other infrastructure development projects for the 2014 Winter Olympics in Sochi, developing facilities for the Asia-Pacific Economic Co-operation (APEC) Summit in Vladivostok and in the construction of the M4 Don motorway.
Mostotrest CEO said, "The acquisition of shares in Inzhtransstroy and Transstroymekhanisatsia will allow us to expand our geographic reach and range of activities, ensuring access to closely related infrastructure development segments including road and airport construction. Consolidation of major players in their fields provides Mostotrest with a strong platform for further strengthening the company's market positions and represents a major step towards Mostotrest's strategic objective to be a leading diversified player across Russia's infrastructure development market".