Anti-monopoly agency to approve Vneshtorgbank deal to up stake

MOSCOW, December 9 (RIA Novosti) - The Russian Federal Anti-Monopoly Service (FAS) is set to approve a deal before the end of the year that would allow state-owned commercial bank Vneshtorgbank to increase its stake in St. Petersburg-based Promstroibank to 75%, FAS head Igor Artemyev said Friday.

"I believe we will have time to make this decision by the end of the year. And this decision will be positive," Artemyev said.

At the same time, the official said that the FAS could stipulate certain conditions involving the banks' structures or conduct. He said that although the deal met the legal competition requirements, there were some sectors where Vneshtorgbank and Promstroibank owned too large of a share.

"If the banks merge, they will obtain a domineering position in these regions," Artemyev explained.

The official said a joint task group including representatives of FAS and both banks had been set up to address the issue.

It was earlier reported that Vneshtorgbank bought 25% of Promstroibank shares and planned to expand the stake to 75% by the end of the year.