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. Last Updated: 07/27/2016

UES's Power Machines Stake Gives Control to Mordashov

Severstal's Alexei Mordashov scooped up Unified Energy System's 25 percent plus one stake in Power Machines on Tuesday, giving the steel magnate control over the turbine maker, UES said in a statement.

Mordashov's bid was accepted after rival bidder Oleg Deripaska pulled out of the race, Vedomosti reported earlier in the day, citing sources close to UES.

Mordashov offered 5.42 rubles (22 cents) per share, valuing the stake at $486 million, via HighStat Limited, said UES. The offer is a little more than the starting price of $460 million, and 25 percent above the current market price.

"UES intends to conclude the deal with HighStat in the very near future," said UES in its statement.

Mordashov's bid brings his interest to a controlling 55 percent, which analysts say will strengthen the hand of Power Machines, the country's largest supplier of technology to the power industry, when it comes to bidding for lucrative contracts in the power sector, expected to be worth billions of dollars to the firm.

Mordashov acquired a 30 percent stake from Interros, Vladimir Potanin's company, in September.

The move was welcomed by analysts. Deutsche Bank analyst Elena Sakhnova said in a research note that the exit of Deripaska significantly reduced the risk of corporate conflict at the company.

Siemens holds 25 percent plus one share in Power Machines. It relinquished its pre-emptive right to bid for Interros' stake after the Federal Anti-Monopoly Service withheld its approval.

Last month, Siemens said it had reached a power-sharing deal with Mordashov at Power Machines.