Russian private freight operator Globaltrans has agreed to buy
the transport unit of Russia's largest iron ore producer,
Metalloinvest, for $540 million, the companies said in a joint
statement on Friday April 27.
Metalloinvesttrans operates 9,202 railcars, handling 44.2
million tonnes of iron ore in 2011, the companies said.
The final value of the deal will depend on the amount of cash
and debt on the Metalloinvesttrans balance sheet by the date of
the transaction, which is planned for the end of May subject to
The companies said the deal would "enhance [Globaltrans']
position as a leading independent private freight rail group in
Russia". It currently operates about 50,000 rail cars.
Globaltrans will provide rail freight transportation and
logistics services to Metalloinvest for three years following
the transaction. It will handle all the rail transportation
cargo volumes in year one based on agreed pricing terms, and
60% in the following two years based on a "right of first
Globaltrans will finance the deal with its own and borrowed
funds, the companies said.