Source Pravda.Ru

YUKOS and Sibneft announce merger

The Russian oil companies YUKOS and Sibneft have announced a merger. According to a press release distributed at a joint conference today, the new company will be called YukosSibneft. It will be the fourth largest oil company in the world in production volume, the press release says.

The new company will be headed by YUKOS CEO Mikhail Khodorkovsky and Sibneft President Yevgeny Shvidler will become the Chairman of the Board of the new company.

The Sibneft major shareholders, who currently control a 94-percent block in this oil company, will sell a 20-percent stake for $3bn. The remaining shares in Sibneft will be exchanged for YukosSibneft shares.

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