Russia's state-owned bank Vneshtorgbank (VTB) is to take a stake in Perm Motors in a move that may prompt a merger with rival engine manufacturer NPO Saturn.
The deal, reported in business daily Vedomosti, is said to be worth "tens of millions of dollars" and is linked to a takeover of the privately owned Guta bank by VTB after a minor crisis in Russia's banking sector this year. Russia's central bank lent VTB $700 million to buy ailing Guta, but only on condition that it also purchased various Guta group assets, including Perm Motors, sources say. The deal is likely to be complete by the end of the year, say VTB officials.
Source: Flight International
