Baltiysky Zavod sold to rival yard

St. Petersburg industrial conglomerate IST Group has sold its 88% stake in shipbuilder Baltiysky Zavod to United Industrial Corp (OPK) which owns the rival Severnaya Verf. The deal ends years of often-fierce competition and gives OPK the opportunity to create a shipbuilding powerhouse. OPK is owned by Mezhprombank, which is controlled by Federation Council member Sergei Pugachyov.

The deal was completed last Thursday for under $100 million. A spokesman for the Center for Analysis of Strategies and Technologies, a defense think tank, said “The two plants complement each other well; if they do it right, the new company can turn into a very attractive business with $500 million in annual sales.”