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. Last Updated: 07/27/2016

Gazprom, SUEK Linkup Delayed

Itar-TassA coal conveyor in operation at a SUEK mine in Buryatia. SUEK asked Deloitte to value its assets by September.
Gazprom and diversified energy group SUEK have postponed merging their coal and power assets due to valuation differences, Kommersant reported Wednesday.

The newspaper quoted industry sources as saying SUEK had asked auditor Deloitte & Touche to value its assets by the end of September after Gazprom said it considered the previous valuation too high.

The country's power sector is undergoing a major reform, under which Gazprom will secure controlling stakes in power generating firms OGK-2 and OGK-6 and minority stakes in smaller power generators TGK-11, TGK-12 and TGK-13.

As a result of the same reform, SUEK will get controlling stakes in TGK-12 and TGK-13.

Gazprom's assets are worth around $4.8 billion, while SUEK's assets are currently estimated at $6.3 billion as it plans to contribute coal assets to the new firm alongside its power stakes.

SUEK accounts for about 30 percent of coal supplies to the domestic market and 20 percent of the country's coal exports.

Government officials remain divided over the planned merger as some say it could be damaging for competition and derail the power sector reform.

Gazprom is seeking to acquire 50 percent plus one share in the joint venture, while SUEK would get the rest.