Volga-Dnepr Group has taken the decision to acquire Air Cargo Germany. The deal will allow the group’s entry into European inland cargo transportation market and it will also open the corridor from Frankfurt to the USA, Kommersant reports.

Anti-monopoly authorities of Germany have reported that the Dutch Volga-Dnepr Logistics B.V. has proceeded with an acquisition order for a share in Air Cargo Germany (ACG) on March 1st. According to sources familiar with the details of the deal, Volga-Dnepr Logistics is the division of Russian Volga-Dnepr airline. The founder of ACG, Andrey Goryashko, said that he expects the decision from German authorities in the next two weeks.

A source close to the market assessed the German company at $30-40 million. According to the EU legislation, non-resident of EU may acquire up to 49% of European company. Experts believe that Volga-Dnepr wants to have the absolute control over ACG, Kommersant notes.

Volga-Dnepr Group is one of the largest carriers at the international market of super-heavy and bulky cargo transportation. The Group’s business is based on charter cargo transportation using An-124 and Il-76 aircraft (Volga-Dnepr airline) and regular flights using Boeing 747 (AirBridgeCargo). President of the Group, Alexander Isaykin, owns 75% of its shares.

The fleet of Air Cargo Germany includes 4 Boeing 747-400s. ACG specializes on cargo transportation to Asia and Africa, performs charter flights to North America and performs truck delivery of cargo in Europe.

Kommersant reminds that ACG has been looking for investor for several years. According to specialized publications, all the ACG’s aircraft are leased. At that, the fleet is quite old; the jets’ average age is 19.5 years. According to Сargo Facts, Air Cargo Germany has been negotiating with the owner of VIM-Avia, Rashid Mursekaev, but the deal fell through. At the same time, CEO of ACG, Michael Bock, stated last year that the company does not need a strategic partner.

According to some experts, ACG has two key advantages. These are: Frankfurt-Hahn base airport and charters to Chicago. And that is what Alexander Isaykin, owner of Volga-Dnepr Group, needs. At present the Russian airline performs flights to America from Netherlands and it is looking for a possibility for performing transportation from Germany. The Russian authorities have negotiated with German colleagues about obtaining the fifth free air (the right to load cargo in Europe and transport it to America) in Frankfurt for Isaykin. However, the negotiations have failed.