Mikhail Alefirenko, analyst of Pharos Financial Group

– Consolidation is good for any industry

The Board of Directors of Atomenergoprom OJSC has decided to set up Separation-Sublimation Complex company. The new OJSC will be a 100% subsidiary of Atomenergoprom OJSC and will manage the separation enterprises of Russia’s nuclear industry (Angarsk Electrolytic Chemical Combine, Siberian Group of Chemical Enterprises, Ural Electrochemical Integrated Plant, Electrochemical Plant).

Consolidation is good for any industry. Particularly, if the separation companies of Atomenergoprom are consolidated into one open joint stock company, in the future that company will be able to distribute its shares among a wide circle of investors.

Openness and transparency – the typical features of an open joint stock company – will certainly enhance the investment appeal of the holding and will attract the attention of big foreign investors to such companies, in particular, and to the nuclear sector, in general. In other words, the more open joint stock companies the nuclear industry will have the more attractive to investors it will be. So, I think that the establishment of Separation-Sublimation Complex company is one more step towards openness on the nuclear market.

Such consolidation will reduce costs, optimize productions and raise competitiveness on the external market due to enhanced market power.