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. Last Updated: 07/27/2016

Siemens and Mordashov in Turbine Deal

Siemens, Germany's largest engineering company, said in a statement Friday that it would share control of Power Machines with Alexei Mordashov after the billionaire bought 30 percent of the country's largest turbine maker.

Mordashov, chief executive of steelmaker Severstal, will select Power Machines' CEO, with Siemens appointing the chief operating officer, the Munich-based company said in its statement.

Mordashov last month bought 30 percent of Power Machines from fellow billionaire Vladimir Potanin after Siemens, which holds 25 percent, waived a right of first refusal. The Federal Anti-Monopoly Service said Sept. 12 that it rejected a bid by Siemens for a controlling stake in Power Machines because the offer threatened competition.

"The partnership will ensure that Power Machines' ambitious investment projects can be rapidly implemented," Mordashov said in the statement.

Power Machines general director Boris Vainkhizer will retain his position, Interfax reported, citing a company source.

Remaining key appointments have yet to be decided, the service reported.

A spokesman for Siemens in Russia told Interfax that the partnership would provide the groundwork for increased cooperation.

Bloomberg, MT