Russian Standard still keen on Nemiroff takeover

Russian Standard still keen on Nemiroff takeover

Russian Standard's founder has said that his company is still in talks to acquire Ukrainian vodka giant Nemiroff.

Roustam Tariko told Bloomberg Television that Russian Standard is "still talking" to Nemiroff's three shareholders about a possible takeover. "One of them is becoming difficult, but I'm still optimistic about completing a deal," said Tariko, on the sidelines of the World Economic Forum in Davos at the end of last week.

He said that the deal would likely cost hundreds of millions of US dollars. Analysts have priced Nemiroff at around US$320m.

The Ukrainian company would hand Russian Standard greater scale, immediate leadership on Ukraine's vodka market and a stronger international presence. Nemiroff's volumes sales rose by an average 5% annually between 2004 and 2009 to reach almost 8.85m nine-litre cases, according to IWSR figures.

Its three shareholders have been publicly seeking a buyer for the business since the beginning the of 2010. Over the last 12 months, discussions with both Stock Spirits and Central European Distribution Corp (CEDC) have broken down and Russian Standard was rumoured in October to be the sole remaining bidder.