November 14, 2011

Sistema acquires Donskoe grain producer

Sistema, one of Russia's largest conglomerates had bought over Donskoe grain producer in a state auction on Friday (Nov 11).

The company said it now has the right to acquire the firm for RUB476.5 million (US$15.6 million).

"Grain production costs in Russia are among the lowest in the world," Sistema chief executive Mikhail Shamolin said. "We believe that our domestic agricultural sector has great potential."

The company has 25.4 hectares of land. Sistema expects the deal to close next month.