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. Last Updated: 07/27/2016

Deripaska Seeks Stake In Transstroi

Billionaire Oleg Deripaska is in talks to expand his construction empire by acquiring part of Transstroi, which specializes in building roads, railways and ports, Deripaska's company said Monday.

Deripaska, majority owner of aluminum producer United Company RusAl, was ranked the country's second-richest man in the latest Russian edition of Forbes magazine.

A spokesman for Basic Element, a company grouping Deripaska's various assets in metals, cars, construction and property, said negotiations were taking place regarding the purchase of a stake in Transstroi.He gave no more details.

Transstroi was founded in 1991 on the assets of the Soviet Union's Ministry of Transport Construction, Vedomosti reported Monday.

The newspaper cited an anonymous employee of Transstroi and several market sources as saying Basic Element was in talks to acquire a 50 percent stake in the company.

It also cited an unidentified competitor to Transstroi as saying such a deal could be worth about $400 million.

His interests in construction include a 3 percent stake in Hochtief, Germany's largest construction company - a shareholding that Basic Element says it plans to increase - and a 30 percent stake in Austrian builder Strabag.

Deripaska bought the stake in Strabag last month for 1.2 billion euros ($1.6 billion), thereby boosting the clout of Europe's fifth-largest builder in Russia.