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. Last Updated: 07/27/2016

Deripaska Wraps Up Strabag Buy

Billionaire Oleg Deripaska has closed the purchase of a 30 percent stake in Austrian builder Strabag announced in April, Deripaska's holding company Basic Element said in a statement Monday.

Deripaska will appoint Gulzhan Moldazhanova, chief executive of Basic Element, to Strabag's supervisory board -- a nonexecutive body that appoints management and makes strategic company decisions, the statement said.

Basic Element said it had gained European Union approval to buy the stake in Strabag.

The stake will be controlled by Rasperia Trading, Basic Element said. Russian regulators also approved the deal.

Strabag, which has around 10.4 billion euros ($14 billion) in annual sales and whose owners include the family of CEO Hans-Peter Haselsteiner and Austria's Raiffeisen NOe-Wien bank, postponed its initial public offering in April when it announced Deripaska's stake acquisition. The IPO is now planned for October.

On Friday, the Boersen-Zeitung newspaper reported that German construction Hochtief plans a joint bid with Deripaska for the overall planning of new constructions in Sochi, which will host the 2014 Winter Olympics.

To have Deripaska on board, who is said to have "best contacts" to the Kremlin, may be helpful to win the contract, the newspaper reported, citing a Hochtief spokeswoman it did not identify.

Investments in the city will probably total from 15 billion euros to 20 billion euros ($20 billion to $27 billion), Hochtief CEO Herbert Luetketratkoetter said, Boersen-Zeitung reported.

Reuters, Bloomberg