Russian Tyre Makers in Merger Talks

Russian business daily Vedomosti reports that Sibur Holding and Nizhnekamskshina, a Tatneft petrochemical subsidiary, intend to merge their tyre assets to create an entity holding two-thirds of the market share in Russia. While Sibur Russian Tyres general director Vadim Gurinov was quoted as saying no decision has yet been made regarding such a merger, the news that the two companies are in talks was confirmed by a Tatneft official.

In 2009, Sibur-Russian Tyres’ share of the Russian market was reported to be 30 per cent, while Nizhnekamskshina held 27 percent. Suggested reasons for the proposed merger are to provide greater protection from raw material price fluctuations and to compete against foreign tyre makers that are establishing facilities in Russia.

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