OREANDA-NEWS. Basic Element announced acquisition of a 50% stake in OOO Industrial Construction Corporation Transstroy, the largest Russian company specializing in the construction of transportation infrastructure.  Antimonopoly authorities approved the transaction at the beginning of October 2007, the press service of the company reports.

OOO Industrial Construction Corporation Transstroy was formed in the summer of 2007, uniting about 40 of the main construction and contracting companies in Russia. Among them are OAO Transstroy Corporation, which was formed out of the former Soviet Ministry of Transport Construction, ZAO Transstroy Engineering Corporation, ZAO Transmonolit, OAO Transstroytonnel and OAO Tunnel Unit #44. Transstroy companies have managed some of the largest transportation infrastructure projects in Russia, including the Moscow Ring Road, the Third Ring Road and the Lefortovsky Tunnel in Moscow; the Ring Road and various defense emplacements in St. Petersburg; the Komi and Yakutia railways; and also hydraulic facilities at the port in Ust-Luga, Primorsk. Transstroy also participated in the reconstruction of Domodedovo, Sheremetyevo-2, Vnukovo and Pulkovo airports.

Vladimir Brezhnev has been elected President and Chairman of the Board of Directors of Industrial Construction Corporation Transstroy.  Yakov Itskov has been appointed General Director of the company. The company’s Board of Directors will consist of equal number Basic Element and Transstroy representatives. “Transstroy has unique knowledge and experience in the management and execution of complex transportation infrastructure construction projects across Russia.  The experience of Russia’s best builders, together with the latest European technology from Strabag and Hochtief, will strengthen the position of our companies as we compete for complex transportation infrastructure projects in Russia,” said Gulzhan Moldazhanova, CEO of Basic Element. Speaking about the deal, Transstroy President, Vladimir Brezhnev said:  “Cooperation between these two leading companies will enable us to achieve synergies and take our business to a new level, to become more competitive, and also to support the continued development of Russia’s transport infrastructure and economy as a whole.” General Director Yakov Itskov added:  “We are confident that the contemporary management methods of our partners and their commitment to leadership will be strengthened further by the unique experience and know-how of our companies, and will create synergies and increase the overall efficiency of our business. We are already working on a number of projects with Basic Element. In time this number will increase significantly.”

Basic Element is a diversified investment company created in 1997 with assets in Russia and abroad. Basic Element’s main assets are in seven sectors: energy, manufacturing, resources, financial services, construction, development and aviation. Basic Element holds a 30% stake in the Austrian company Strabag, and a 9.99% stake in the German company Hochtief. In 2006, the consolidated revenues of Basic Element’s holdings totaled over $18 billion. The market value of the Group’s assets is more than $23 billion.  More than 240,000 people work in Basic Element companies. Companies that are part of the Basic Element group are located not only in Russia and the CIS, but in Africa, Australia, Asia, Europe, and Latin America as well.