Companies
Moscow - Russia's OAO Rusal is buying Russian rival Sual and acquiring some assets of a Swiss commodities trader in a three-way deal that will create the world's biggest aluminum producer, dethroning U.S.-based Alcoa Inc.
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The announcement Monday by Rusal, which is controlled by Russian billionaire Oleg Deripaska, underscores the rise of Russia's commodities-based industries against a backdrop of rising prices.
Under the terms of the agreement, privately held Rusal will issue new shares to acquire rival aluminum producer Sual as well as the Jamaican, Irish and Italian alumina assets of Swiss-based commodities trader Glencore.
Sual and Glencore will hold 22 percent and 12 percent stakes, respectively, in the new company, Sual chairman Viktor Vekselberg said. The deal requires regulatory approval in Russia and the European Union.
But Vekselberg said he expects the new company to carry out an initial public offering of stock in less than 18 months, most likely in London.
The expanded Rusal will control 12 percent of the world's primary aluminum, producing nearly 4 million tons per year and eclipsing the 3.55 million tons that that Alcoa reported in 2005.
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